Covid 19 - 5% VAT Added Detail

Following on from the Budget yesterday the Government has been quick to release further information on the application of the 5% VAT rate .
Firstly, the matter is covered for attractions in the 'VAT on admission charges to attractions'.

It confirms that the following are covered;

• shows,
• theatres,
• circuses,
• fairs,
• amusement parks,
• concerts,
• museums,
• zoos,
• cinemas,
• exhibitions and
• similar cultural events and facilities.

The temporary reduced rate does not apply to admission to sporting events.

This temporary reduced rate only applies to admission fees. Obviously some admission fees include more than the right to enter the venue or attraction.

The document covers this scenario by giving worked examples when the main supply is the admission fee and other supplies are included but are considered to be incidental.

The second is 'VAT: reduced rate for hospitality, holiday accommodation and attractions'.

This again provides some explanations but more helpful are the links to the relevant VAT Notices for each sector.