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.
