VAT Rate cut – Tourism & Hospitality Sectors (update)
Further to our earlier news item on this matter, HMRC has published Revenue and Customs Brief 10 (2020); temporary reduced rate for hospitality, holiday accommodation and attractions which serves to clarify some of the points that were previously unknown. In particular the new brief sets out more clearly which supplies are eligible for the reduced rate from 15th July 2020 to 12th January 2021.
During this period the 5% VAT rate will apply to:
- 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
When it comes to attractions and performing arts, admissions to the following qualify (where they would otherwise attract the standard rate of VAT):
- amusement parks
- similar cultural events and facilities
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