Extension to the temporary VAT reduced rate for hospitality and tourism

Posted on 1st October 2020 by Streets

The Government has announced it will extend the temporary reduced rate of VAT from 20% to 5% from the 12th January 2021 to 31st March 2021 for the tourism and hospitality sectors.

The following supplies will benefit from the temporary 5% reduced rate of VAT:

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

Admissions to some of these (usually those run on a not-for-profit basis) are already VAT-exempt. This will remain the case.

Where admission to these attractions is covered by the existing cultural exemption, the exemption will take precedence.

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