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Extension to the temporary VAT reduced rate for hospitality and tourism

Posted on 1 Oct 2020 - News

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The Government has announced it will extend the temporary reduced rate of VAT from 20% to 5% from the 12th January 2021 to 31st March 2021 for the tourism and hospitality sectors.

The following supplies will benefit from the temporary 5% reduced rate of VAT:

  • 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
  • admissions to the following attractions that are not already eligible for the cultural VAT exemption such as:

              - theatres

              - circuses

              - fairs

              - amusement parks

              - concerts

              - museums

              - zoos

              - cinemas

              - exhibitions

              - similar cultural events and facilities

Admissions to some of these (usually those run on a not-for-profit basis) are already VAT-exempt. This will remain the case. 

Where admission to these attractions is covered by the existing cultural exemption, the exemption will take precedence.

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