Guidance on VAT Reduction & Eat Out to Help Out Registration

VAT reduction rates for hospitality, holiday accommodation and attractions

The government made an announcement on 8 July 2020 allowing VAT registered businesses to apply a temporary 5% reduced rate of VAT to certain supplies for:
– hospitality
– hotel and holiday accommodation
– admissions to certain attractions

The temporary reduced rate will apply to supplies that are made between 15 July 2020 and 12 January 2021 and are being brought in as an urgent response toCovid-19 to support businesses severely affected by forced closures and social distancing measures. Full Guidance can be found here.

VAT on admission charges to visitor attractions

A new temporary reduced rate of VAT of 5% was also announced for admission to certain attractions. This temporary rate will apply from 15 July 2020 to 12 January 2021 and applies to businesses that make supplies of admissions that are currently taxable at the standard rate. This includes:

– shows, concerts and theatres
– circuses and fairs
– amusement parks and zoos
– museums and exhibitions
– cinemas
– similar cultural events and facilities

The temporary reduced rate does not apply to admission to sporting events and only applies to admission fees. Full Guidance can be found here

Register your establishment for the Eat Out to Help Out Scheme

You can use the Eat Out to Help Out Scheme to offer a discount to diners and encourage them to eat at your restaurant applicable as follows:

– All day, every Monday, Tuesday and Wednesday from 3 to 31 August 2020
– To offer a 50% discount, up to a maximum of £10 per person, to diners for food or non-alcoholic drinks to eat or drink in
– To claim the money back from the government

There is no limit to the number of times customers can use the offer during the period of the scheme. Your customers cannot get a discount for someone who is not eating or drinking. Alcohol and service charges are excluded from the offer. Registration will close on 31 August. Full guidance on how to register can be found here and full details on the Eat Out to Help Out Scheme here.