Leisure and hospitality VAT

VAT changes from 1st April 2022: End of temporarily reduced VAT rate for leisure and hospitality

The VAT rate has returned to the standard rate, (currently 20%) for the leisure and hospitality sector.


In July 2020, VAT was temporarily reduced from 20% to 5% for the hospitality, hotel and leisure sectors, including on the admission charges to certain attractions.


This VAT cut was introduced in response to the economic crisis arising from the pandemic and to encourage customer demand.


In Spring 2021, the Chancellor announced a further extension to the relief with the 5% rate of VAT being extended until 30th September 2021. From 1st October 2021 the VAT rate increased to 12.5% until 31st March 2022.


What next?

If you have any questions regarding the end of the temporarily reduced VAT rate, please contact Sandy Cochrane.

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