In this month’s VAT updates, Graham Elliott reviews the changes to hospitality supplies, DIY housebuilder claims and child car seats
Reduced rate for Hospitality supplies
The reduced VAT rate now applies to a range of hospitality supplies from 15 July 2020 to 12 January 2021. Alcoholic drinks are excluded and will continue to be subject to the standard rate.
The reduced rate applies to eating on the premises, to hot takeaways, to admissions to many visitor attractions, and to certain holiday supplies. The details are awaited, and the latest material on the subject at the time of writing was HMRC’s policy paper here.
This government publication, Information on the reduced rate of VAT for hospitality, holiday accommodation, and attractions, says: ‘This measure temporarily reduces VAT charged on these supplies from 20% to 5%. Customer experience is expected to improve accordingly.’
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