The new VAT rate for registered businesses on supplies related to hospitality will commence on 1st October 2021, moving on from the temporary reduced rate which came into effect from the 15th July 2020. The temporary reduced rate offered registered businesses a reduced rate of 5% VAT payable, in relation to the impact of COVID-19 on the hospitality industry.

The reduced rate, and new VAT rate from 1st October 2021, affect registered businesses who purchase supplies related to:

  • hospitality
  • hotel and holiday accommodation
  • admissions to certain attractions

The temporary reduced rate of 5% applies to supplies that are made between 15th July 2020 and 30th September 2021. As of 1st October 2021, the new rate of 12.5% will come into effect, which is scheduled to end on 31st March 2022.