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VAT Cut Kicks in For Certain Sectors

July 15, 2020

The public will be able to enjoy cheaper entertainment as the new temporary tax cut comes into force.

Restaurants, amusement parks theatre tickets, and others will benefit from a VAT cut as part of a £4.1b plan to boost tourism and get the public spending again.

The Government stated, that added tax will drop from 20% to 5% for six months from Wednesday, with food and non-alcoholic drinks also included.

The reduced rate applies to the following:

  • Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
  • Hot takeaway food and hot takeaway non-alcoholic beverages
  • Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities.

The reduction also applies to admission to the following attractions, where they do not qualify for the cultural VAT exemption:

  • Theatres
  • Circuses
  • Fairs
  • Amusement parks
  • Concerts
  • Museums
  • Zoos
  • Cinemas
  • Exhibitions
  • Similar cultural events and facilities.

The guidance that sets out the VAT treatment of catering and takeaway food and hotels and holiday accommodation have also been updated to reflect the temporary change.

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