UK HMRC Updates VAT Guidance for Changes in Temporary Reduced VAT Rate for Tourism and Hospitality

UK HMRC published updated guidance on 5 October 2021 concerning changes in the temporary reduced rate of VAT for tourism and hospitality from 1 October 2021:

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

The temporary reduced rate of VAT for tourism and hospitality was introduced in response to the COVID-19 pandemic, with an initial reduced rate of 5%, which was changed to a reduced rate of 12.5…