The temporary reduced VAT rate of 5% that applied to supplies that are made between 15 July 2020 and 31 March 2021 has been extended to 30th September 2021.

The government proposes to amend the reduced rate to 12.5% from 1st October 2021 to 31st March 2022.

The following supplies will benefit from the temporary 5% reduced rate of VAT:

  • Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
  • Hot takeaway food and hot takeaway non-alcoholic beverages
  • Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
  • Admissions to the following type of attractions that are not already eligible for the cultural VAT exemption: theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions, similar cultural events and facilities.