VAT News

VAT Rate cut – Tourism & Hospitality Sectors (update)

09.07.2020

Further to our earlier news item on this matter, HMRC has published Revenue and Customs Brief 10 (2020); temporary reduced rate for hospitality, holiday accommodation and attractions which serves to clarify some of the points that were previously unknown. In particular the new brief sets out more clearly which supplies are eligible for the reduced rate from 15th July 2020 to 12th January 2021.

During this period the 5% VAT rate will apply to:

  • 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

When it comes to attractions and performing arts, admissions to the following qualify (where they would otherwise attract the standard rate of VAT):

  • theatres
  • circuses
  • fairs
  • amusement parks
  • concerts
  • museums
  • zoos
  • cinemas
  • exhibitions
  • similar cultural events and facilities

 

For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you seek professional advice before acting on any of the news articles or information included.  


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