Commentary

Reduced rate for the hospitality industry extended

Budget Day 2021
Budget Day 2021 | Commentary

Reduced rate for the hospitality industry extended

Budget Day 2021 | Commentary

Reduced rate for the hospitality industry extended

The reduced rate of 5% which currently applies to certain supplies relating to hospitality, hotel and holiday accommodation and admission to certain attractions will be extended until 30 September 2021. A new reduced rate of 12.5% will then apply until 31 March 2022, after which the standard rate will apply. Regulation 55K of the VAT Regulations will be amended to ensure that businesses using the flat-rate scheme will also benefit.

See OOTLAR para 1.40; Introduction of a new reduced rate of VAT for hospitality, holiday accommodation and attractions

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