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:
- amusement parks
- 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.