Temporary reduced rate of VAT for hospitality and hotel accommodation and attractions

Support provided by HMRC

What does this involve?

The UK Government is allowing VAT-registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:

  • hospitality
  • hotel and holiday accommodation
  • admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 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.

Guidance is available on which supplies are eligible for the reduced rate of VAT and how the changes will affect different types of businesses.

Am I eligible?

Yes, if you are a VAT-registered business making supplies in hospitality, hotel and holiday accommodation or admission to certain attractions between 15 July 2020 and 12 January 2021. Full details of eligible supplies are available on the UK Government website.

What does this cost?

This is a free service.

Who is this for?

VAT-registered businesses dealing in hospitality, hotel and holiday accommodation and attractions.

How long does this take?

The reduced rate of VAT applies to supplies made between 15 July 2020 and 12 January 2021.

Important information

The reduced rate of VAT means that some businesses may have to alter how they carry out their VAT calculations. This includes businesses which use the Flat Rate Scheme and the Tour Operators Margin Scheme. If your business uses one of these schemes, the UK Government guidance includes information on how the changes will affect you.

There may be situations where you receive payments or issue invoices before 15 July 2020 for supplies that take place on or after 15 July 2020. The guidance also covers how to handle these situations.

Next steps

Visit the UK Government website for more information and to read the full guidance.

Support provided by HMRC

Help us improve findbusinesssupport.gov.scot

For example, something is incorrect, confusing or not working properly. Try to be as specific as possible. Don't include personal or financial information like your national insurance number or credit card details.