Change in VAT for the Hospitality and Leisure Sector as of April 1st
During the COVID-19 pandemic, the government implemented reduced VAT rates to raise revenue and keep companies afloat. The following industries were affected by the decreased VAT rate:
- Hospitality
- Hotels and vacation rentals
- Specific attractions admissions
The original application for the 5% rate expired on September 30, 2021. Following that, the 12.5 percent VAT rate was implemented, with the tax’s applicability ending on March 31, 2022.
The regular rate of 20% VAT will be reinstated on 1 April 2022 for the supply of hospitality, hotel and vacation accommodation, and entrance to selected attractions and events. Businesses who are presently using the lower rate must guarantee that they are ready for the VAT rate increase to 20% on April 1, 2022. Businesses may need to make modifications and revise their VAT accounting methods and financial models as a result of this.
Our VAT specialists can assist you in ensuring that the right rate has been applied to past and future supplies so that you stay compliant.
Please contact one of our VAT experts if you have any queries about these changes.
Hello there! I just wish to offer you a huge thumbs up for your great info you have got here on this post. I will be returning to your website for more soon.