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Temporary hospitality VAT rate

Currently, there is a temporary reduced VAT rate of 5% applicable to hospitality supplies (excluding alcohol). This was introduced in response to COVID19 last year. From 1 October, this rate will rise to 12.5% until 31 March 2022 before returning to the standard 20% rate. Affected supplies are food and drink, overnight accommodation and admission fees to most attractions.
 
The normal tax point rules (i.e. the earlier of the invoice date or payment date) will apply to supplies paid for on or before 30 September but consumed later on, and so VAT savings could be enjoyed by prepaying for things like Christmas parties (though as mentioned previously, alcohol is still subject to 20% VAT in any case) before the change takes place.
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Added By: Sharon Worger on 02nd Sep 2021 - 17:26
Last Updated: 02nd Sep 2021 - 17:32

Number of Views: 27
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