Transitionary rate of VAT for hospitality comes into force
The temporary reduced rate of VAT for hospitality has increased to a transitionary rate from today, 01 October 2021.
The new rate of 12.5 per cent will remain until 31 March 2022, when it reverts to the standard rate of 20 per cent.
The temporary reduced rate of five per cent was introduced on 15 July 2020 in response to the coronavirus pandemic. It was initially planned to end on 12 January 2021, but was extended until 31 March 2021, and then 30 September 2021, to reflect continued lockdown measures.
The temporary rate and transitionary rate apply to almost all supplies of hospitality, hotel and holiday accommodation and products, including food and non-alcoholic beverages sold for on-premises consumption and hot takeaway food and non-alcoholic beverages.
Both rates also apply to admissions to attractions that are not eligible for the cultural VAT exemption, such as theatres, circuses, fairs, amusements parks, concerts, museums, zoos, cinemas, and exhibitions.
According to the latest statistics, the reduced rates will support more than 150,000 hospitality, hotel and holiday accommodation businesses.
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