Skip links

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COVID-19 hospitality VAT rate cut introduced in July 2020 now withdrawn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

Sign-up for VAT Calc’s FREE global VAT and GST news e-mail updates.

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)
Contact VATCalc to learn how our single VAT determination, reporting and e-invoicing platform can help you manage global compliance change
2023 Europe European VAT registration thresholds & Intrastat
1 Jun 2023 Slovenia Temporary energy VAT cut ends
1 Jun 2023 Egypt Digital services VAT compliance portal
1 Jun 2023 Bolivia Latest wave of e-invoicing taxpayers
1 Jun 2023 São Tomé and Príncipe Implements 15% VAT
1 Jul 2023 Saudi Arabia Wave 2 B2B e-invoicing taxpayers
1 Jul 2023 Italy Gas energy VAT cut ends
1 Jul 2023 Poland SLIM VAT 3; 20 reforms to Polish regime
1 Jul 2023 Jersey Foreign e-commerce and marketplaces into GST net
1 Jul 2023 Egypt Paper invoices phased out for e-invoices
1 Jul 2023 Kenya Removal registration threshold non-resident digital services
1 Jul 2023 Saudi Arabia Second round of mandatory e-invoicing
1 Jul 2023 Malaysia Phased introduction of e-invoicing - TBC
1 Jul 2023 Australia Peppol e-invoicing
1 Jul 2023 Philippines 12% VAT on foreign digital service providers
1 Jul 2023 US South Dakota end transaction threshold on sales tax
1 Jul 2023 US South Dakota cuts sales tax rate to 4.2%
1 Jul 2023 US Mississippi sales tax on digital services
1 Jul 2023 Canada Marketplace GST reporting of user transactions
1 Jul 2023 Guatemala Latest round of taxpayers on e-invoicing
1 Aug 2023 India New 7-day deadline for e-invoice reporting
1 Aug 2023 India Mandatory e-invoicing threshold drops to ₹5
1 Aug 2023 US Louisiana drops sales tax thresholds
1 Sep 2023 Ireland Tourism VAT rate returns to 13.5%
1 Sep 2023 Slovakia Temp 10% rate on tourism and sport now permanent
1 Oct 2023 Portugal Food VAT rate cut ends
1 Oct 2023 Saudi Arabia Wave 3 taxpayers for B2B e-invoicing
1 Oct 2023 Thailand Raises VAT to 10%
1 Oct 2023 Japan Tax qualified invoices
1 Nov 2023 EU Tourism operators margin scheme reforms proposal
1 Nov 2023 Saudi Arabia Fourth round of mandatory e-invoicing
1 Dec 2023 Saudi Arabia Fifth wave of taxpayers mandated for e-invoicing
1 Jan 2024 EU EU permissions on e-invoicing removed
1 Jan 2024 EU DAC7 first marketplace reports due
TBC 2024 EU Quick fixes - VAT in the Digital Age
1 Jan 2024 Spain Likely start of e-invoicing rollout
1 Jan 2024 Belgium VAT return rule changes
1 Jan 2024 Belgium Consolidation of reduced VAT rates
1 Jan 2024 Luxembourg VAT rate returns to 17%
1 Jan 2024 Switzerland VAT rises to 8.1%
1 Jan 2024 Germany Restaurant and catering temporary VAT cut to 7% ends
1 Jan 2024 Portugal SAF-T Accounting becomes mandatory
1 Jan 2024 Greece Ends COVID-19 temporary reduced rates
1 Jan 2024 Greece myData live invoice reporting via ERPs
1 Jan 2024 Poland SLIM VAT 4 reforms
1 Jan 2024 Czech Proposed consolidation of reduced VAT rates
1 Jan 2024 Slovakia IS EFA e-invoicing for B2B and B2C
1 Jan 2024 Romania Full mandatory B2B e-invoicing
1 Jan 2024 Lithuania VAT registration threshold rises to €65,000
1 Jan 2024 Estonia 2% VAT rise
1 Jan 2024 Israel VAT on B2C digital services by foreign providers
1 Jan 2024 Israel mandatory pre-clearance e-invoicing
1 Jan 2024 Bahrain Potential e-invoicing implementation
1 Jan 2024 UAE Potential e-invoice implementation
1 Jan 2024 SIngapore Rise of GST to 9% to 2024
1 Jan 2024 Aruba Implements 12.5% VAT
15 Jan 2024 Dominican Republic 1st wave of mandatory e-invoicing
1 Apr 2024 New Zealand 15% GST on gig and sharing economies digital platforms
1 Jul 2024 Belgium Phased B2B e-invoicing mandate
1 Jul 2024 Spain Certified electronic invoice software
1 Jul 2024 France E-invoice and e-reporting for B2B and B2C
1 Jan 2024 Poland Mandated e-invoicing introduced
1 Jul 2024 Bhutan Implementation of VAT
1 Jan 2025 EU Single VAT Registration in the EU - extension of OSS
1 Jan 2025 EU Marketplaces deemed supplier for EU sellers' VAT
1 Jan 2025 EU Accommodation & travel platforms deemed supplier for VAT
1 Jan 2025 EU EU IOSS mandated for marketplaces
1 Jan 2025 EU Call-off stock VAT simplification ends
1 Jan 2025 EU Harmonisation of B2B Reverse Charge rules
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 Germany Mandatory B2B e-invoicing
1 Jan 2025 Croatia Mandatory B2B e-invoicing
1 Jan 2025 Latvia B2B e-invoices mandated
1 Jan 2025 France Mid-sized taxpayers included in e-invoicing mandate
1 Jan 2025 Indonesia VAT rate to rise 1% to 12%
15 Jan 2025 Dominican Republic 2nd wave of mandatory e-invoicing
1 Jan 2026 EU DAC8 harmonised crypto asset reporting
1 Jan 2026 France Small businesses join e-invoicing mandate
15 Jan 2026 Dominican Republic 3rd wave of mandatory e-invoicing
1 Jan 2028 EU Digital Reporting Requirements including e-invoicing harmonisation
1 Jan 2028 EU Structured e-invoices supersede paper invoices
1 Jan 2028 EU EC Sales lists replaced by Digital Reporting Requirements
2028 EU EU Customs reforms
1 Mar 2028 EU €150 import consignment threshold removed


Get our latest news right in your mailbox