The lowered VAT rate is applied to both eat-in and takeout food, accommodation and attractions. Its goals are to provide relief to the suffering hospitality industry and to assist in securing jobs in the sector.
The UK VAT Cuts Cover the following:
pubs (ex alcohol);
All forms of accommodation
Take away food
Entrance fees for entertainment outings such as theatre, fairs, museums amusement parks and concerts etc.
The news of the extension will be welcomed by both the public and the hospitality sector.
As Chancellor Rishi Sunak pointed out in July, the initiative combined supports over 2.4 million staff across 150,000 businesses. The VAT cut alone is set to save households around £160 per year.
According to Sunak, 80% of hospitality firms stopped trading in April and 1.4 million hospitality workers have been furloughed under the Coronavirus Job Retention Scheme – the highest proportion of any sector. (source)
This article was originally published by our sister company vatglobal.com