UK extends cut in hospitality and tourism VAT rate to 31 March 2021

5 October 2020

The UK tax authorities have confirmed that the temporary VAT rate cut on hospitality services, from the standard rate of 20% to the reduced rate of 5%, will be extended to 31 March 2021. 

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

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

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