Press release

3 Mar 2021 London, GB

VAT extension for hospitality: Sector will welcome reduced VAT rate extension says EY

The hospitality and tourism sector will welcome the Chancellor's extension to the 5% reduced rate of VAT which be in place for a further six months to 30 Sept 2021.

Press contact
Jamie Ratcliffe

EY UK&I Indirect Tax Leader

Indirect Tax Partner for EY UK&I. Helping companies navigate change. Parent of three. Huge sports fan. Passionate about Building a Better Working World.

Jamie Ratcliffe, EY’s UK Head of Indirect Tax, comments on the Chancellor’s Budget:

“The hospitality and tourism sector will welcome the Chancellor's extension to the 5% reduced rate of VAT which be in place for a further six months to 30 Sept 2021. Thereafter, the VAT rate will be 12.5% for an additional six months before increasing again to 20% in April 2022. This is good news and although the staggered changes will add some complexity and costs to the VAT position, this will bring another full year of VAT relief for these businesses until 31 March 2022.”

Ends

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