Reduced VAT rate for hospitality, holiday accommodation and attractions sectors

As announced at budget 2021, the government will be legislating to:

  • extend the temporary reduced rate of VAT of 5% until 30 September 2021
  • prepare for a new rate of 12.5% from 1 October 2021 to 31 March 2022

The supplies to which the temporary reduced rates will apply remain the same.