End of VAT reduced rate for the hospitality sector

The temporary reduced rate of VAT for tourism and hospitality ended on 31 March 2022. HMRC has updated its guidance accordingly.

The temporary 12.5% reduced rate of VAT for the hospitality and tourism sectors ended on 31 March 2022. Groups 14 to 16 of VATA 1994 Sch 7A expired on that date meaning that, from 1 April 2022, supplies should be standard rated (unless other provisions apply). HMRC has updated the following VAT Notices accordingly:

VAT Notice 709/1 – Catering, takeaway food
VAT Notice 701/20 – Caravans and houseboats
VAT Notice 709/3 – Hotels and holiday accommodation

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