It's down to 9% from today.
A Midlands hotel owner say the vat rate reduction has come just on time for hospitality businesses.
The VAT rate on restaurant, catering and hairdressing services falls from 13.5% to 9% from today.
The Government says the permanent tax cut is designed to support businesses and jobs, while encouraging greater competition that could help reduce prices for customers.
Owner of Wineport Lodge in Glasson Ray Byrne, says the change is a lifeline for hospitality businesses:
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