On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies relating to:
- hospitality
- hotel and holiday accommodation
- admissions to certain attractions.
This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 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.
To find out how to set or update your VAT settings, watch below.
