Coronavirus – Extension to Reduced VAT Rate for Hospitality
Coronavirus – Reduced VAT Rate for Hospitality Extension
As announced at budget 2021, the government will be legislating to:
- Extend the temporary reduced rate of VAT of 5% until 30 September 2021
- Prepare for a new rate of 12.5% from 1 October 2021 to 31 March 2022
The supplies to which the temporary reduced rates will apply remain the same.
Reduced VAT Rate Scheme
The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:
- Hospitality
- Hotel and holiday accommodation
- Admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 31 March 2021.
These changes are being brought in as an urgent response to the coronavirus (COVID-19) pandemic to support businesses severely affected by forced closures and social distancing measures.
Source: HMRC ‘Help and Support’ advice
https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions?utm_medium=email&utm_campaign=govuk-notifications&utm_source=f843a357-13cc-46d0-b25c-a84cf7836b64&utm_content=daily
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