New reduced rate of VAT for the hospitality sector
From today, 1 October, the new rate of VAT for the tourist and hospitality industry has increased from a temporarily reduced rate of 5% to a new reduced rate of 12.5% which will end on 31 March 2022.
This temporary relief was introduced as an urgent response to the coronavirus emergency. Its main objective was to support businesses severely affected by the coronavirus pandemic and social distancing measures.
Before the current reduced rate was introduced, the standard rate of VAT (20%) applied to all supplies of restaurant services, hot takeaway food, holiday accommodation and admission to many attractions.
Visit the gov.uk website for more information, here.
If you have any concerns or queries relating to this or any other business matter, please get in touch.