FAQs - VAT: REDUCED RATE FOR HOSPITALITY, HOLIDAY ACCOMMODATION AND ATTRACTIONS

When does the reduced rate apply?

reduced rate to 5% from 15 July 2020 to 12 January 2021

 

What supplies does this apply to?

The reduced rate applies to supplies relating to

• Hospitality
  • Hot & cold food & non-alcoholic drinks for consumption on your premises
  • Hot takeaway food and hot takeaway non-alcoholic drinks
• Hotel & holiday accommodation
• Admission to certain attractions

 

What supplies of food and drink are not affected by the reduced rate?

• cold takeaway food
• supplies of groceries
• supplies of food that require significant further preparation
• service charges

 

I have received an advance payment before 15 July 2020 and the supply is after 15 July 2020.  Can I use the reduced rate?

The special change of rate provisions allows the use of the VAT rate at the basic tax point instead of the normal tax point.  Therefore the reduced ate can be used, however, you must raise a credit note if changing the rate of VAT.

 

15-07-2020

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