New reduced rate of VAT for hospitality and leisure

The hospitality and leisure industry were particularly hard hit by the effects of the Covid-19 pandemic and associated lockdowns. To help the industry recover they benefitted from a reduced rate of VAT of 5% from 15 July 2020 until 30 September 2021.
As a temporary measure, a new reduced rate of VAT of 12.5% applies from 1 October 2021 until 31 March 2022.
The rate will revert to the standard rate of 20% from 1 April 2022.
Supplies benefitting from the reduced rate
The following supplies, which benefitted from the reduced rate of 5% until 30 September 2021, will also benefit from the new reduced rate of 12.5% from 1 October 2021 to 31 March 2022.

  1. Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs.
  2. Hot takeaway food and hot takeaway non-alcoholic beverages.
  3. Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities.
  4. Admission to cultural attractions that do not already benefit from the cultural VAT exemption, such as theaters, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and other similar cultural events and facilities.
    Where an admission to an attraction is within the existing cultural VAT exemption, this takes precedence over the reduced rate.

Need professional accounting service or accounting advice? Contact us to book a 15-min Free Consultation with us today.

To find out more please follow us on Facebook, Twitter, or LinkedIn. Feel free to contact us on 0333 006 4847 or request a call back by texting 075 6464 7474


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on mix
Share on google
Share on whatsapp
Share on email
Share on print
On Key

Related Posts