Reduced VAT for Hospitality Ends Today
Since the 8th of July 2020 the government put in place a temporary 5% reduced rate of VAT (usually 20%) to certain supplies relating to hospitality, hotel and holiday accommodation and admission to certain attractions.
On 1 October 2021 this was raised to 12.5% and will end TODAY 31 March 2022, going back up to the standard 20%.
The following supplies benefit from the temporary 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:
- amusement parks
- similar cultural events and facilities
Accounting for reduced VAT
If MATCH handles your bookkeeping this is all in hand. Otherwise, be wary of the rate changes on the relevant dates to ensure your VAT returns are accurate.
Ensure your pre-set VAT rates within your accountancy software are updated so the relevant items do not automatically apply outdated rates.
Also remember to update any EPOS software and equipment and inform relevant staff members.
MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.
MATCH Accounting Limited