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FAQs - VAT reduced rate for hospitality, holiday accommodation & attractions

AFO was part of the UKMUSIC campaign to get a reduction in VAT on Tickets sales and the subsequent campaign to confirm Festivals were seen as attractions and so be included.

The following information may answer some of the queries we have been receiving.

Readers may also be interested to know that there is now a new campaign to have this VAT reduction period extended into , at best the next 3 years and at worst the 2021 busy selling period.

FAQS - VAT: REDUCED RATE FOR HOSPITALITY, HOLIDAY ACCOMMODATION AND ATTRACTIONS

When does the reduced rate apply?

reduced rate to 5% from 15 July 2020 to 12 January 2021

What supplies does this apply to?

The reduced rate applies to supplies relating to

  • Hospitality
    • Hot & cold food & non-alcoholic drinks for consumption on your premises
    • Hot takeaway food and hot takeaway non-alcoholic drinks
  • Hotel & holiday accommodation
  • Admission to certain attractions

What supplies of food and drink are not affected by the reduced rate?

  • cold takeaway food
  • supplies of groceries
  • supplies of food that require significant further preparation
  • service charges

I have received an advance payment before 15 July 2020 and the supply is after 15 July 2020.  Can I use the reduced rate?

The special change of rate provisions allows the use of the VAT rate at the basic tax point instead of the normal tax point.  Therefore the reduced ate can be used, however, you must raise a credit note if changing the rate of VAT.

Also See…………

https://www.gov.uk/hmrc-internal-manuals/vat-time-of-supply/vattos8300
https://www.gov.uk/guidance/vat-guide-notice-700#changes-in-tax-rates-and-liability
https://www.gov.uk/guidance/vat-guide-notice-700#section14

Association of Festival Organisers (AFO): 11th Sep 2020 15:01:00

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