Reduced rate VAT for tourism and hospitality extended to 31 March 2021.

In response to the continuing coronavirus health emergency, the reduced VAT rate of 5% and the consequential changes to the flat-rate scheme will now both have effect until 31 March 2021.

The reduced rate applies to supplies provided by the hospitality, holiday accommodation and attractions and reduces the rate of VAT charged from 20% to 5% on supplies of holiday accommodation, takeaway food, restaurant/cafe meals eaten on the premises, and admissions to tourist attractions.

The reduced rate was introduced on 15 July 2020 and was originally set to end on 11 January 2021, but has now been extended to 31 March 2021.

Full details of the reduced rate is available from the webpage:-