UK cuts hospitality and tourism VAT to 5% until January 2021

8 July 2020

From 15 July 2020 to 12 January 2021, the UK will cut the VAT rate applicable on hospitality services from the standard rate of 20% to the reduced rate of 5%.

This cut will apply to catering, restaurant and cafe services, accommodation and admission to attractions. It will not apply to the sale of alcoholic drinks, which will remain at the standard rate of 20%.

It is hoped that by introducing this cut it will help to support the UK hospitality sector, which has been badly hit by the coronavirus pandemic.

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