VAT: reduced rate for hospitality, holiday accommodation and attractions

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In order to continue to support businesses and jobs in the hospitality sector, the reduced 5% rate of VAT will continue to apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK until September 31, 2021.

The 5% reduced rate of VAT will also continue to apply to supplies of accommodation and admission to attractions across the UK.

From October 1 until March 31, 2022 the rate will be set at 12.5% and will then revert to 20% from April 1, 2022.

Which attractions are eligible for the temporary reduced rate of VAT from July  15, 2020?

This applies to businesses that make supplies of admissions that are currently taxable at the standard rate. This includes:

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

Examples of where the reduced rate may apply could be attractions such as:

  • a planetarium
  • botanical gardens
  • studio tours
  • factory tours

The temporary reduced rate does not apply to admission to sporting events.

This temporary reduced rate only applies to admission fees.

However, where goods are part of the admission fee and are incidental to the main supply, the whole supply is eligible for the temporary reduced rate.

Ellis & Co Chartered Accountants and Business Advisers, Chester & Wrexham - 01244 343504, info@ellis-uk.com