Government has released a brief to explain the changes in the VAT treatment of certain supplies of holiday accommodation, hospitality and admission to certain attractions announced on 8 July 2020. The changes, which introduce a temporary 5% reduced rate of VAT, take effect from 15 July 2020 and last to 12 January 2021.
Who it applies to:
Organisations that make supplies of hospitality and holiday accommodation and admission to certain attractions (among others).
Affected supplies – details:
- 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 and holiday accommodation, pitch fees for caravans and tents, and associated facilities
admissions to attractions that are not already eligible for the cultural VAT exemption including: fairs; amusement parks; concerts; cinemas. Read more here.