- Shepherd Partnership
Reduced rate of VAT for hospitality, holiday accommodation and attractions is increasing to 12.5%
Reduced rate of VAT for hospitality, holiday accommodation and attractions is increasing to 12.5% from 1 October 2021
The current 5% rate was introduced in July 2020 to help businesses trade through the COVID-19 pandemic. Although the 5% rate ends on 30 September 2021, this will be replaced a rate of 12.5% which will apply between 1 October 2021 and 31 March 2022 at which time it is due to revert to the standard rate of 20%.
The reduced rate applies 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
admissions to the attractions that are not already eligible for the cultural VAT exemption for example theatres, amusement parks, cinemas, zoos, etc.
HM Revenue & Customs’ guidance can be found on GOV.uk.