RCB/2/21 Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions
Revenue & Customs Brief, Issue 2. 3 March 2021
1 Purpose of this brief
This brief explains the changes in the VAT treatment of certain supplies of hospitality, hotel and holiday accommodation, and admission to certain attractions as announced at Budget 2021.
2 Who it applies to
Organisations that make supplies of hospitality, hotel and holiday accommodation and admission to certain attractions, and their advisers.
On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions. This came into force on 15 July 2020. The Chancellor of the Exchequer later announced on 24 September 2020 that the temporary reduced rate for tourism and hospitality would be extended to 31