PWA – VAT on Hospitality – the latest rates and rules (June 11th 2021)

VAT FOR HOSPITALITY

 

There is a reduced rate of VAT for Hospitality as follows:

 

  • Commenced on 15 July 2020
  • Now extended until 30 September 2021
  • 5% VAT on a range of supplies:

–  Hotels

–  Restaurants

–  Pubs

–  Take-away food

–  Attractions

 

 Supplies subject to the reduced VAT rate are as follows:

 

  • Hospitality

–  Supplies in the course of catering including supplies of hot and cold food and       drink to be consumed on the premises

–  Supplies of hot takeaway food and drink to be consumed off the premises

 

  • Accommodation

–  The provision of hotel and holiday accommodation

–  Pitch fees for caravan parks and rents and related facilities

 

  • Attractions

 

Admission fees (only) to attractions not covered by the cultural exemption

 

This does NOT include admission to sporting events but does include the following:

–  Shows, theatres, circuses, concerts, live online performances

–  Amusement parks, cinemas, exhibitions

–  Fairs

–  Museums, zoos, botanical gardens

–  Studio tours, factory tours

 

 

THE REDUCED RATE VAT

 

  • Does NOT apply to alcohol sales which are at 20% VAT.

–  Daily takings will need to be split between supplies at the different rates

 

 

AFTER 1st OCTOBER 2021

 

  • Rate moves to 12½ % from 1 October 2021 to 31 March 2022

After 1st April 2022 the VAT rate returns to 20%.