Accounts Navigator
In an attempt to address the financial difficulties of businesses in the hospitality and tourism industries, Rishi Sunak also announced a range of VAT reductions on selected supplies for these sectors.
Summary of the changes are set out below:
Hospitality
When you supply food and non-alcoholic beverages for consumption on your premises, between 15 July 2020 and 12 January 2021 you will only need to charge 5% VAT.
You will also be able to charge the reduced 5% rate of VAT on your supplies of hot takeaway food and hot takeaway non-alcoholic drinks.
Hotel and holiday accommodation
You will also benefit from the temporary reduced rate if you:
supply sleeping accommodation in a hotel or similar establishment
make certain supplies of holiday accommodation
charge fees for caravan pitches and associated facilities
charge fees for tent pitches or camping facilities
Admission to certain attractions
If you charge a fee for admission to certain attractions where the supplies are currently standard rated, you will only need to charge the 5% reduced rate of VAT between 15 July 2020 and 12 January 2021.
However, if the fee you charge for admission is currently exempt, that will take precedence and your supplies will not qualify for the reduced rate.
Remember to input these changes when completing your bookkeeping.
If you require any assistance with regards to VAT please do not hesitate to contact us.
This article is copyright © 2024