With just two months remaining until the UK introduces a new VAT rate for the hospitality industry, we’re advising tax teams around the world to consider whether they are ready to implement and comply with it.
If your organisation makes supplies within the hospitality sector (including hotel, holiday accommodation and attractions), you need to act now.
In July 2020, the UK government introduced a temporary 5% reduced rate of VAT for these supplies in response to the impact of the Covid-19 pandemic. This rate was extended first until 31st March 2021 and again to 30th September 2021.
But from 1st October 2021, the reduced rate will be replaced by the introduction of a new reduced rate of VAT of 12.5%, which will be in place until 31st March 2022.
Pre-pandemic, hospitality businesses paid and collected VAT at the UK’s standard rate of 20%, so the new 12.5% figure is an entirely new rate for tax teams to determine, calculate
Source Innovate Tax
All about VAT rates in the UK, click HERE
