‘Businesses fail to pass on VAT cut’

MANY businesses have been reluctant to pass on the recent cut in the VAT rate on items such as coffee, takeaway food and cinema admissions, according to a tax expert.

This news comes as Topaz admit it did not pass on the VAT reduction on coffee — which is believed to be one of its bestsellers.

In theory, the reduction of the VAT rate from 13.5% to 9% should have resulted in a noticeable saving for consumers, according to VAT specialist, Conor Condon of Taxback.com.