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Temporary reduction of the VAT rate – hospitality sector

Temporary reduction of the VAT rate – hospitality sector

On 8th July the Government announced a temporary reduction of the VAT rate applicable to the hospitality sector.  The reduced rate of 5% will apply to certain transactions from 15 July 2020 to 12 January 2021.

The temporary reduced rate of VAT will apply to:

Hospitality

  • Food and non-alcoholic beverages consumed on the premises
  • Hot takeaway food and hot takeaway non-alcoholic drinks

Accommodation

  • Sleeping accommodation in a hotel or similar establishment
  • Caravan pitches and associated facilities
  • Tent pitches or camping facilities
  • Certain holiday accommodation (other accommodation advertised or held out as suitable for holiday or leisure)

Admission charges to attractions

  • Shows
  • Theatres
  • Museums
  • Zoos
  • Circuses
  • Cinemas
  • Fairs
  • Exhibitions
  • Amusement parks
  • Similar culture events and facilities
  • Concerts
  • Online live performances (not pre-recorded)

It should be noted that where one of the above qualifies for exemption, the admission charge will remain exempt. The 5% only applies to admission charges that were previously 20%.

It does not include entry to sporting events.