VAT Reduced Rate Extended

The reduced 5% rate of VAT for goods and services supplied by the tourism and hospitality sector has been extended to 30 September 2021.

To help support businesses further there will be a transitional rate of 12.5% from 1 October to 31 March 2022 with the standard rate of 20% applying from 1 April 2022.

The VAT registration and deregistration thresholds are unchanged at £85,000 and £83,000, respectively until April 2024.


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