Covid 19 - What you need to know - HMRC guidance on VAT reduction.
2020
The Government has now published guidance, to help VAT registered businesses understand how the temporary reduction will be applied.
The Government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies relating to:
- hospitality
- hotel and holiday accommodation
- admissions to certain attractions
The temporary reduced rate will apply to supplies that are made between 15th July 2020 and 12th January 2021.
If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you will also be able to apply the lower rate of VAT as well as on supplies of hot takeaway food and hot takeaway non-alcoholic drinks.
More information about how these changes can be found in Catering, takeaway food (VAT Notice 709/1).