COVID-19 update – 14 July – VAT reductions

The government have released more information on the temporary VAT reductions and here is what we know.

The temporary 5% reduced rate will apply to certain supplies relating to hospitality, hotel and holiday accommodation and admissions to certain attractions that are made between 15 July 2020 and 12 January 2021.

Hospitality Businesses

Businesses in this sector will be eligible to apply the 5% reduced rate when serving food and non-alcoholic drinks for consumption on the premises and when serving hot takeaway food and non-alcoholic drinks. The rules are necessarily complex around food (as always!) so make sure to check the detail.

Find out more

Hotels and holiday accommodation

The temporary 5% reduced rate will apply here if:

• You supply sleeping accommodation in a hotel or similar establishment
• You make certain supplies of holiday accommodation
• You charge fees for caravan pitches and associated facilities
• You charge fees for tent pitches or camping facilities

Find out more.

Admissions to attractions

Between the 15 July 2020 and 12 January 2021, you will only need to charge the reduced rate of VAT, unless your admissions fee is currently exempt from VAT as this will continue to be the case.

Find out more

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