VAT Reduced Rate Summary
Please find below a brief summary of the VAT Reductions that came into effect on the 15th July.
- From 15th July 2020 to 12th January 2021 a reduced rate of VAT of 5% applies to supplies made by VAT registered businesses in the hospitality, holiday accommodation and attractions sectors
- The 5% reduced rate does not apply to the sale of alcoholic beverages
- Other supplies, such as the provision of hot food, non-alcoholic beverages, holiday accommodation and admission to certain attractions will qualify for the 5% reduced rate
- If the reduced rate applies to your business you must ensure that you are correctly recording your sales, so the correct amount of output VAT is declared to HMRC
For further guidance on the changes click here
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