Revenue and Customs Brief 10 (2020) Guidance on the temporary reduced rate of VAT
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Published 9 July 2020
Guidance on the temporary reduced rate of VAT for hospitality,
holiday accommodation and attractions
Purpose of this brief
This brief explains the changes in the VAT treatment of certain
supplies of hospitality, hotel and holiday accommodation and admission
to certain attractions announced by the government on 8 July 2020. The
changes take effect from 15 July 2020.
Who it applies to
Organisations that make supplies of hospitality, hotel and holiday
accommodation and admission to certain attractions, and their advisers.
On 8 July 2020, the government announced that it would introduce a
temporary 5% reduced rate of VAT for certain supplies of hospitality,
hotel and holiday accommodation, and admissions to certain attractions.
This cut in the VAT rate from the standard rate of 20% will have
effect from 15 July 2020 to 12 January 2021.
These changes are being brought in as an urgent response to the
coronavirus (COVID-19) pandemic to support businesses severely affected
by forced closures and social distancing measures.
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
- admissions to the following attractions that are not already
eligible for the cultural VAT exemption such as:
- amusement parks
- similar cultural events and facilities
Where admission to these attractions is covered by the existing
cultural exemption, the exemption will take precedence.
More information about issues relating to the temporary reduced rate
can be found in
More information on supplies of food and drink can be found at
You can also find more information on the provision of sleeping
accommodation in hotels and holiday accommodation at
More information on the admission to attractions can be found at
If you have any questions about these changes please refer to VAT: general enquiries for further advice -
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Article Published/Sorted/Amended on Scopulus 2020-07-09 17:15:11 in Tax Articles