Guidance On VAT Reduction, Extension And Yes, It Does Cover Festivals.
For attractions (read festivals), then sell tickets now
The following update is guidance on VAT reduction, extension and yes, it does cover festivals.
The guidance on reduced VAT for hospitality, holiday accommodation and attractions has been updated to reflect the extension in VAT reduction to 5% until 31 March 2021 for certain supplies relating to hospitality, hotel and holiday accommodation and admissions to certain attractions.
For attractions (read festivals), this applies to businesses that make supplies of admissions that would normally be taxable at the standard rate. These include shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities i.e. festivals.
Examples of where the reduced rates may apply could be attractions such as a planetarium, botanical gardens, studio tours, factory tours, (festivals). It does not include any supplies that are normally exempt under the items 1 or 2 of Group 13 of Schedule 9 to VAT Act 1994. The temporary reduced rate does not apply to admissions for sporting events.
This temporary reduced rate only applies to admission fees, however, where goods are part of the admission fee and are incidental to the main supply, the whole supply is eligible for the temporary reduced rate i.e. a ticket for the festival including camping can all be rated at 5%. Further information can be found in paragraph 8.1 of VAT Guide VAT Notice 700.Previous Story: The Question On All Our Lips Is 'Will The Vaccine Save Most Of Our Season?Next Story: Culture Recovery Fund 2 Urgent Update 22 January 2021
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