Hospitality Industry: VAT
Commons · Question 9776 · Tabled 15 Jun 2026 · Treasury · Official record
Answered 23 Jun 2026
Question
Asked by Euan Stainbank
To ask the Chancellor of the Exchequer, what assessment she has made of the the potential merits of changing the VAT registration threshold for hospitality businesses.
Answer
Answered by Dan Tomlinson, 23 Jun 2026
At £90,000, the UK has the second highest registration threshold among all 38 OECD countries, which keeps the majority of businesses outside the VAT system. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods a...