Challenge: New VAT Rates
The 0%/10% VAT Split Is Here
Unprepared food goes to 0% on April 1st, 2026. Hot prepared meals stay at 10%. Every grocery store and food service business becomes a mixed-supply business overnight — and needs Input Tax Apportionment calculated for every VAT return.
What the New Rates Mean for Your Business
Businesses that sell both zero-rated and standard-rated goods cannot claim 100% of their Input VAT. The deductible fraction must be calculated each period — this is Input Tax Apportionment.
0%
Unprepared Food
Groceries, raw ingredients, packaged foods sold unheated.
10%
Hot Prepared Meals
Restaurant meals, hot takeaway food, catering services.
Auto
CoralLedger Handles It
Automatic rate tagging, apportionment calculation, and return generation.
Don't Let the Rate Change Catch You Off Guard
CoralLedger automatically applies the correct rate to every transaction from April 1st.
Get Compliant Now →