This article will explain the new VAT rate changes for the hospitality, holiday accommodation and attractions industry. Plus, how to activate tax rates in QuickBooks Online.
On 8 July 2020, the government announced that it would introduce a temporary reduced VAT rate of 5% for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions.
Recently announced at this year’s Budget 2021, the government will be extending the temporary reduced flat rate of 5% until 30 September, 2021.
A new VAT rate of 12.5% will be introduced on 1 October, 2021 and will remain in effect until 31 March, 2022.
The full standard VAT rate of 20% will return on 1 April, 2022. Please read Guidance on the temporary reduced rate of VAT for more information.
QuickBooks already has the Reduced rate of 5% included, but you may need to make the VAT rate active.