Commentary

709/3/21 Hotels and holiday accommodation

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

709/3/21 Hotels and holiday accommodation

Part V8 HMRC Notices | Commentary

709/3/21
Hotels and holiday accommodation

March 2021

As announced at budget 2021, the government will be legislating to:

  1.  

    •     extend the temporary reduced rate of VAT of 5% until 30 September 2021

  2.  

    •     prepare for a new rate of 12.5% from 1 October 2021 to 31 March 2022

The supplies to which the temporary reduced rates will apply remain the same.

1 Overview

This notice cancels and replaces Notice 709/3 (June 2013) and provides guidance on the introduction of the temporary 5% reduced rate of VAT that will apply between 15 July 2020 and 31 March 2021.

1.1 What this Notice is about

This notice explains how supplies by hotels, inns, boarding houses and similar establishments should be treated for VAT purposes—see sections 2 to 4.

It also explains how you should treat supplies of holiday accommodation, including caravans and camping facilities, see sections 5 and 6.

Deposits, cancellation and other charges associated with the supply of hotel and holiday accommodation are covered in section 7.

This notice has been updated to reflect legislative changes that introduce a temporary 5% reduced rate on supplies of the:

  1.  

    •     provision of sleeping accommodation in:

  2.  
    1.  

      •     hotels

    2.  

      •     inns

    3.  

      •     boarding houses and similar establishments

  3.  

    •     grant of a license to occupy holiday accommodation and charges for:

  4.  
    1.  

      •     seasonal pitches for caravans – including supplies of facilities provided in relation to the occupation of the pitches

    2.  

      •     pitches for tents and camping facilities

All references in this notice to “temporarily reduced rated” or “temporary reduced rate” are to supplies made between

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