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Hospitality VAT rate returns to 20%

Posted 01/04/2022

The reduced rate VAT for hospitality venues ends today with the VAT rate increasing from 12.5% back to the original 20%

The VAT reduction was introduced for businesses trading in the hospitality sector in July 2020 with the rate originally dropped to 5%, increasing to 12.5% in October 2021.

The reduction in VAT was given to VAT-registered businesses from the hospitality, hotel and holiday accommodation sectors to financially support them during the initial lockdown of the Covid-19 pandemic.

For Government Guidance, please see https://www.gov.uk/government/publications/introduction-of-a-new-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions

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