The temporary VAT rate of 5% for the tourism and hospitality markets that has been in place since last summer will end on 30 September 2021 and a new rate of 12.5% will come into effect on 1 October.
In a bid to reduce the impact of the pandemic on the hard-hit hospitality, hotel and attractions sectors, a reduced VAT rate of 5% was introduced on 15 July 2020. To further assist severely affected businesses, this rate was extended until 31 March this year and then a further extension, to 30 September was put in place.
The supplies that will benefit from this on-going reduction are:
- food and non-alcoholic beverages sold for on-premises consumption, e.g., 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
The VAT rate will return to the normal level of 20% on 1 April 2022.
Further information issues relating to the temporary reduced rate can be found here.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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