From July 2020, the Government reduced the rate of VAT to 5% for food, accommodation, and entry fee to help businesses in the hospitality sector during the Covid-19 pandemic. Many businesses had their doors closed for months and once reopened they were still not to full capacity due to covid restrictions.
However, the government has announced recently that VAT for hospitality is scheduled to increase to 12.5% from 1st October 2021. After, 31st March 2022, it is will then return to 20% VAT rate. The Government’s original plan was to return to the normal standard rate of 20% from 13th January but have since extended this to 1st April.
|Date||VAT %||VAT fraction|
|15th July 2020 to 30th September 2021||5%||1/21|
|1st October 2021 to 31st March 2022||12.5%||1/9|
|1st April 2022 onwards||20%||1/6|
For a better understanding of the changes to the VAT rate for hospitality, get in touch with us at AIT Accountants, we are happy to help with any queries. Contact us at [email protected]