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UK 20% tourism & hospitality VAT rate returns 1st Apr 2022

COVID-19 hospitality VAT rate cut introduced in July 2020 now withdrawn

The UK temporary Value Added Tax rate cut on hospitaliy and tourism  has now ended, with the sector now returning the standard VAT rate of 20%. The pandemic cut to support hotels, catering and hospitality operated over to phases:

  1. 5% between 15 July 2020 and 30 September 2021 (an extension from the planned 12 January 2021 withdrawal); and
  2. 12.5% 1 October 2021 and 31 March 2022. It has now returned to 20%

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What UK tourism and hospitality services benefited from the VAT cut?

Restaurants; cafes; pubs (ex alcohol); hospitality; hotels; B&B’s; home rental; caravan and tent sites; hot take away food; theatres; fairs; circuses; amusement parks; concerts; museums; zoos; cinemas; studio or factory tours; botanical gardens; exhibitions; and similar cultural events and facilities. The reduction only applied on entrance fees to the attractions listed; not other supplies provided during the visits such as souvenirs.

Note: served alcoholic drinks did not benefit from the cut. It excluded entry into sporting events.

Services subjected to tourism VAT reduction per HMRC:

  • sleeping accommodation in:
    • hotels;
    • inns; and
    • boarding houses and similar establishments;
  • granting of a license to occupy holiday accommodation and charges for:
    • seasonal pitches for caravans, including supplies of facilities provided in relation to the occupation of the pitches; and
    • pitches for tents and camping facilities;
  • hot and cold food for consumption on the premises on which they are supplied;
  • hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied;
  • hot takeaway food for consumption off the premises on which they are supplied; and
  • hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied.

Countries such as the Germany, Lithuania and the Belgium are now in the process of withdrawing their tourism and hospitality VAT rate cuts introduced during COVID-19 crisis.

Future global VAT / GST changes

Date Country VAT / GST  changes (click for details)
1 Aug 2022 Luxembourg Diesel VAT returns to standard VAT rate
1 Aug 2022 Estonia Cut in digital news VAT rate
1 Aug 2022 Botswana Temporary VAT cut to 12%
16 Aug 2022 Czech Reversal of COVID-19 emergency rate cuts
1 Sep 2022 Cyprus Heating VAT returns to standard rate
30 Sep 2022 Uruguay 13% tourism COVID-19 VAT cut ends
1 Oct 2022 Italy Emergency cuts in domestic gas VAT rate end
1 Oct 2023 India Lowering of e-invoicing threshold
1 Oct 2022 Kenya Full e-invoice implementation
1 Oct 2022 Uruguay Tourism VAT emergency cut ends
16 Nov 2022 EU EU VAT in the Digital Age proposals
2023
1 Jan 2023 EU Tourism operators margin scheme reforms proposal
1 Jan 2023 Germany Restaurant and catering return to 19% standard rate
1 Jan 2023 France Introduction of VAT group option
1 Jan 2023 UK VAT penalty regime reforms
1 Jan 2023 Hungary Potential SAF-T HU introduction
1 Jan 2023 Portugal ATUD numbering on invoices
1 Jan 2023 Portugal Qualified electronic signature requirement on invoices
1 Jan 2023 Portugal Accounting SAF-T invoice listing for non-resident businesses
1 Jan 2023 Greece Ends COVID-19 temporary reduced rates
1 Jan 2023 Poland VAT Groups introduced
1 Jan 2023 Poland SLIM VAT 3; 20 reforms to Polish regime
1 Jan 2023 Belgium Electricity and heating VAT rate cut ends
1 Jan 2023 Bulgaria Hotel, trouism, health, catering 9% VAT rate ends
1 Jan 2023 Lithuania Hospitality; sport and cultural events VAT returns to 21% rate
1 Jan 2023 Romania Potential rises for hotels and other services
1 Jan 2023 Serbia B2B transactions (following 2022 B2G)
1 Jan 2023 Jersey Foreign e-commerce and marketplaces into GST net
1 Jan 2023 EU DAC 7 harmonised digital platform VAT transaction requests
1 Jan 2023 Bulgaria VAT registration threshold rise
1 Jan 2023 Ukraine SAF-T phased introduction
1 Jan 2023 Kuwait VAT or excise tax implementation
1 Jan 2023 Oman Potential e-invoicing introduction
1 Jan 2023 India India cuts e-invoicing threshold to ₹5 crore
1 Jan 2023 China Fapiao special invoice mandatory
1 Jan 2023 SIngapore Increases GST to 8%
1 Jan 2023 SIngapore GST exemption withdrawn on e-commerce imports
1 Jan 2023 Malaysia Sales tax on low-value import consignments
1 Jan 2023 Vietnam Crisis 2% VAT cut on basics is withdrawn
1 Jan 2023 Australia Australia PEPPOL e-invoicing 2022
1 Jan 2023 US Missouri sales tax on foreign e-commerce
1 Jan 2023 Uzbekistan Cuts VAT to 12%
1 Jan 2023 UAE Potential e-invoice implementation
1 Jan 2023 Aruba Implements 12.5% VAT
1 Jan 2023 Suriname 15% VAT implementation
1 Jan 2023 Brazil Extension of e-invoicing to small companies
1 Jan 2023 Chile Extends VAT to many services
1 Jan 2023 Maldives Raises GST to 8%
31 Jan 2023 Romania First SAF-T returns due
1 Feb 2023 Botswana Ends temporary VAT cut to 12%
1 Mar 2023 Ireland Tourism VAT rate returns to 13.5%
1 Jul 2023 Australia Peppol e-invoicing
1 Sep 2023 Thailand Raises VAT to 10%
1 Oct 2023 Japan Tax qualified invoices
2024
1 Jan 2024 Spain Likely start of e-invoicing rollout
1 Jan 2024 Belgium Phased B2B e-invoicing mandate
1 Jan 2023 Switzerland Potential VAT rise to 8.1%
1 Jan 2024 Poland Mandated e-invoicing introduced
1 Jan 2024 Slovakia IS EFA e-invoicing for B2B and B2C
1 Jan 2024 SIngapore Increases GST to 9%
1 Jul 2024 Spain Certified electronic invoice software
1 Jul 2024 France E-invoice and e-reporting for B2B and B2C
1 Jul 2024 Bhutan Implementation of VAT
2025
1 Jan 2025 EU Increased VAT rate setting freedoms
1 Jan 2025 EU VAT rate thresholds change foreign companies
1 Jan 2025 EU EU VAT rule changes on cross-border virtual events
1 Jan 2025 Latvia B2B e-invoices mandated

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