VAT: temporary reduced rate for hospitality, holiday accommodation and attractions

On 8th 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.

The cut in the VAT rate from the standard rate of 20% will have effect from 15th July 2020 to 12th January 2021.

These changes were brought in as a response to COVID-19 to support businesses severely affected by forced closures and social distancing measures.

Affected supplies can be seen on the Revenue and Customs Brief 10 which also provides link to further guidance here.