Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions
Published 9 July 2020
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This publication is available at https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2020-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/guidance-on-the-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions
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 announced by the government on 8 July 2020. The changes take effect from 15 July 2020.
Who it applies to
Organisations that make supplies of hospitality, hotel and holiday accommodation and admission to certain attractions, and their advisers.
Background
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. The Chancellor of the Exchequer announced on 24 September 2020 that the temporary reduced rate for tourism and hospitality will be extended to 31 March 2021.
This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 31 March 2021.
These changes are being brought in as an urgent response to the coronavirus (COVID-19) pandemic to support businesses severely affected by forced closures and social distancing measures.
Affected supplies
The following supplies will benefit from the temporary 5% reduced rate of VAT:
- food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
- hot takeaway food and hot takeaway non-alcoholic beverages
- sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
- admissions to the following attractions that are not already eligible for the cultural VAT exemption such as:
- theatres
- circuses
- fairs
- amusement parks
- concerts
- museums
- zoos
- cinemas
- exhibitions
- similar cultural events and facilities
Where admission to these attractions is covered by the existing cultural exemption, the exemption will take precedence.
More information
More information about issues relating to the temporary reduced rate can be found in VAT: reduced rate for hospitality, holiday accommodation and attractions.
More information on supplies of food and drink can be found in Catering, takeaway food (VAT Notice 709/1).
You can also find more information on the provision of sleeping accommodation in hotels and holiday accommodation in Hotels and holiday accommodation (VAT Notice 709/3).
More information on the admission to attractions can be found in VAT: Admission charges to attractions.
If you have any questions about these changes please refer to VAT: general enquiries for further advice.