VAT rate changes from September 2021

By August 26, 2021 No Comments

VAT rate increase in hospitality, holiday accommodation and attractions

As announced at the Budget 2021, the temporary reduced rate of VAT of 5% is ending on 30th September 2021. A new reduced rate of 12.5% will then be introduced until 31st March 2022.

The government allowed VAT registered business to apply a temporary 5% reduced rate of VAT between 15th July 2020 to 30th September 2021 relating to:

1. Hospitality – 5% VAT charged on sale of food and non-alcoholic beverages as well as charging 5% VAT on your supplies.
More information about this can be found on Catering, takeaway food (VAT Notice 709/1) – GOV.UK (
2. Hotel and holiday accommodation – 5% VAT charged on the supply of sleeping accommodation such as hotels, making certain supplies of holiday accommodation, fees of caravan pitches, tent pitches, camping and other associated facilities.
More information about this can be found on Hotels and holiday accommodation (VAT Notice 709/3) – GOV.UK (
3. Admissions to certain attractions such as shows, theatres, fairs and many more.
More information about this can be found on VAT on admission charges to attractions – GOV.UK (

This policy was introduced by the government to support businesses in certain sectors following the lifting of Covid-19 lockdown.

If you have queries or wish to discuss the above, please contact our office on 01633 746666

Parker & Co Accountants