VAT cut

Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September 2021.

  • Hospitality

If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when you make these supplies between 15 July 2020 and 31 March 2021 you will only need to charge 5%.

 

You will also be able to charge the reduced rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.

 

More information about how these changes apply to your business can be found in Catering, takeaway food (VAT Notice 709/1).

 

  • Hotel and holiday accommodation

Following business will also get benefit from the temporary reduced rate:

- supply sleeping accommodation in a hotel or similar establishment

- make certain supplies of holiday accommodation

- charge fees for caravan pitches and associated facilities

- charge fees for tent pitches or camping facilities

More information about how these changes apply to your business can be found in Hotels and holiday accommodation (VAT Notice 709/3).

 

  • Admission to certain attractions

 

If you charge a fee for admission to certain attractions where the supplies are currently standard rated, you will only need to charge the reduced rate of VAT between 15 July 2020 and 31 March 2021.

 

However, if the fee you charge for admission is currently exempt that will take precedence and your supplies will not qualify for the reduced rate.

More information about how these changes apply to your business can be found in VAT: Admission charges to attractions.

 

From October, businesses will have to pay a 12.5 percent VAT rate until end of March 2022.

Disclaimer: The information in this mini-guides is based on publicly available information. While we take every effort to keep the guides up-to-date, you should not solely rely on them for your business decisions. Should you have any questions, please feel free to reach us at info@wolfe-strategies.com