Vat Rate Change Instructions

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Last week, the government announced that they are temporarily reducing VAT for restaurants and takeaways in a groundbreaking move to help kickstart the economy.

To help all of our customers, we have created a new VAT Rate Change Tool for all of our customers to help make this process easier. You will be able to install the VAT Rate Change Tool free of charge from Wednesday 15th July and it will be available for two weeks.

If you already have our Bulk Import App, our easily updatable template will be available in your existing app.

Setting up a new tax rate:

To set up a new tax rate on your Epos Now system, please follow the below instructions:

  • Step One - Log into https://www.eposnowhq.com/
  • Step Two - Navigate to “Setup” and then “Banking”
  • Step Three - Click on “Tax Rates”
  • Step Four - Click “Add Tax Rate”
  • Step Five - Complete all details, giving your tax rate an identifiable name such as “5TaxC”
  • Step Six - Input percentage to 5%
  • Step Seven - Click “add”


You’re now ready to alter the tax codes on your food and non-alcoholic beverages!

The process you follow for updating tax information on products depends on whether you have the Bulk Import App:

Bulk Import App
VAT Change Import Tool

If you don’t have the Bulk Import App:

To change the tax rate on individual items, please follow the instructions below:

  • Step One - Navigate to “manage” and you’ll be automatically on your product list
  • Step Two - Check the “show price details” box
  • Step Three - Click “edit” next to the product
  • Step Four - Select your new tax rate from the drop-down menu
  • Step Five - You can now edit your sale price if you wish to pass on savings to your customer
  • Step Six - Click “update” and it will automatically update in your system, including front till if you’ve changed the price.

Remember to update your tax rate and selling price for “Eat Out” as well as “Eat In” too.

Accounting Integrations:

If you’re integrated with one of our accounting integrations (POS Accounting, Xero or Quickbooks), you will need to review or update your mapping within your accounting software to ensure there’s an equivalent 5% VAT rate. If you don’t do this, your End of Day Sync will fail.

Xero - On the app details page, look for the ‘Xero TaxRates Settings’ section. The tax rates that are listed on the back office will need to be mapped to an account on Xero - Use the dropdown menus to select the accounts. By default, they will be set to ‘Select an Account’:

Quickbooks - Use the menu pane on the left of Quickbooks > Click Taxes > Set up your tax rates here:

a. These must match the tax rate percentages​ that Epos Now has.
b. The tax names do not need to be identical - However you must ensure that the percentages match correctly, as otherwise tax figures may be synced incorrectly.
c. Once tax rates are set up in Epos Now, and the same have been set up in Quickbooks, you can edit the connection between the platforms on the Tax Mappings page of the Epos Now Quickbooks app.


Step One - Go to your App in the Back Office.
Step Two - Click on “edit mapping”
Step Three - You will be taken to the POSAccounting Portal to link your new 5% rate.

Eat Out to Help Out App

Earlier in July, the UK Government announced the Eat Out to Help Out Scheme. The scheme is designed to attract diners back into restaurants by offering a 50% discount from restaurants in August.

Any hospitality business that provides food for immediate consumption can sign up to the Eat Out to Help Out Scheme, including restaurants, pubs, cafes, canteens and food halls with a seating area.

Our new App is designed to make calculating this discount, and reporting to HMRC, easier for hospitality business owners.

Click Here to Read Our Guide

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