If you are in the hospitality, holiday, or attraction industry then you may have benefited from a reduction in VAT.
On the 8th of July 2020, a temporary reduction of 15% in VAT was announced last year. This meant that businesses in these industries would only have to pay 5% VAT.
It must be hoped that by then the pandemic will be under control enough to make further reductions unnecessary. However, the impact of the pandemic has left many businesses still struggling. Many had to put in a lot of effort to get themselves back on their feet.
This was originally intended to last until 31st March but was extended to the 30th of September 2021. It has further been announced that from the 1st of October 2021 the VAT will go up to 12.5% and this reduction will last until 31st March 2022.
These reductions apply to food and non-alcoholic beverages, both hot and cold, sleeping accommodation from hotels and camping pitches and a wide range of attractions.
This also applies to amenities dedicated to those sites such as electricity which are included in the pitch fees. Separately metered utilities would not however be included.
The reduction will be applied to the period which is covered by it if the pitch fee is paid yearly, so it would have to be calculated at the different rates according to dates.
This is great support for the industry that has significantly suffered during the pandemic. The lockdowns left the businesses shut and everything put on hold. Thus, suffering financially.
If you need more information about whether this applies to you then there is a government document which explains more. Click here for the document.