Further Extension to VAT Rate Cut for Tourism & Hospitality Industries

BLOG3rd Mar 2021

Following Rishi Sunak’s budget announcement earlier today the temporary reduced rate of 5% VAT for the Tourism and Hospitality Sectors has been extended for a further 6 months until 30th September 2021.  Furthermore, an interim rate of 12.5% will be introduced for the sector from 1st October 2021 until 31st March 2022. Thereafter the standard rate of VAT will apply again.

More information on what supplies are included within the temporary reduced rate can be found in our earlier blog below:


As the interim VAT rate from 1st October 2021 is a brand new rate, businesses should ensure that their systems are capable for incorporating the new temporary VAT Rate of 12.5%.

How can AAB help?

Our Indirect Tax team has experience of previous VAT rate changes and the issues experienced by businesses. Our team will be able to support you the practical aspects of a rate change.

If you require further information or support regarding the temporary VAT rate change, please contact Suzanne Yule, Indirect Tax Assistant Manager, or your usual AAB contact.

How AAB can help you with

VAT & Customs

VAT is increasingly complex and impacts all aspects of your business. We can provide VAT advice to unravel complexity, help ensure compliance and make sure you pay no more VAT, Customs Duty, Excise Duties and various environmental taxes than necessary. Our team’s specialist skills have been acquired through supporting numerous clients, and working in HMRC and private industry. We provide comprehensive VAT advice and indirect tax services and, whether it’s compliance matters or complex restructuring, we’ll support you with practical, tailored solutions.

View our VAT & customs service

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