VAT reduced to 5% on certain supplies of hospitality, holiday accommodation and attractions

There will be a temporary reduction in the rate of VAT on supplies between 15 July 2020 and 12 January 2021.  Supplies that will benefit from the reduced rate are:

  • food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
  • hot takeaway food and hot takeaway non-alcoholic beverages
  • sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
  • admissions to the following attractions that are not already eligible for the cultural VAT exemption such as:
    • theatres
    • circuses
    • fairs
    • amusement parks
    • concerts
    • museums
    • zoos
    • cinemas
    • exhibitions
    • similar cultural events and facilities

Further information is available at https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions.

Please get in touch if you have any questions on how this will affect your business.

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