Hospitality VAT returns to 20% in March.
To try and help the tourism and hospitality industries after their toughest year ever. The Government made VAT 5% on hospitality (except alcohol), holiday accommodation and most attraction tickets from July 2020-September 2021.
In October this rate was raised to 12.5% but this rate will only be in place until 31st March 2022 when the usual VAT rate of 20% will resume.
This 12.5% rate of VAT currently applies to:
· Theme parks
· Live concerts
· Other similar events and attractions.