From 1 October 2021, the government will introduce a new reduced rate of VAT for hospitality, holiday accommodation and attractions. This is to support businesses with the transition back to the standard rate of VAT (20%) as the UK recovers post lockdown.
The new rate of 12.5% will be in place until 31 March 2022.
Who does this affect?
The change will apply to all businesses that meet the following criteria:
- Make certain supplies relating to hospitality
- Make supplies of holiday accommodation
- Charge for admission to certain types of attractions will be using the new rate
How are we supporting customers?
We’ve updated our knowledgebase articles to reflect this change and have added a new tile to our Legislation Hub.
Here at Sage X3 there will be no in-product changes, but we’ll be sending a partner communication. Below is a link to a document for VAT rate changes.