VAT on alcohol served in pubs in the UK is generally 20% , because alcohol is normally sold at the standard VAT rate. Alcohol duty is separate from VAT and is charged in addition to VAT.

In plain terms

  • VAT: 20% on the sale price of the drink in the pub.
  • Alcohol duty: extra tax built into the product cost, depending on the type and strength of the drink.
  • So the price you pay at the bar usually includes both taxes, plus the pub’s own margin.

Example

If a pint is priced at £5.00 including VAT, the VAT element is part of that total, not added on afterward. The pub has already accounted for duty and VAT in its pricing.

Useful distinction

  • VAT is the sales tax you see in the final price.
  • Alcohol duty is a separate excise tax on the alcohol itself.

TL;DR: In UK pubs, alcohol is usually charged at 20% VAT , with separate alcohol duty also included in the price.