VAT changes for food delivery platforms: What hospitality businesses need to know

HMRC has identified significant VAT non-compliance in the online takeaway sector, which it says puts businesses that follow the rules at an unfair disadvantage.

From October 2027, online marketplaces, including delivery platforms will become responsible for collecting and accounting for VAT on qualifying sales of goods by UK businesses to consumers through their platforms.

The changes are particularly relevant to restaurants and takeaways that use delivery platforms. This is not a new VAT charge, but a change to who is responsible for accounting for it.