The Government has announced it will extend the temporary reduced rate of VAT from 20% to 5% from the 12th January 2021 to 31st March 2021 for the tourism and hospitality sectors.
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
Admissions to some of these (usually those run on a not-for-profit basis) are already VAT-exempt. This will remain the case.
Where admission to these attractions is covered by the existing cultural exemption, the exemption will take precedence.
