Find Out What The 5% VAT Relief Means For Visitor Attractions?

Following an announcement by the UK Chancellor Rishi Sunak on the 8th July, we’ve put together some advice on what the 5% VAT relief really means for the visitor and tourist attraction industry.

What’s The Guidance?

We’ve put a few questions and answers together based on the current guidance available from the government.

This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 until 30 Sep 2021*;
then 12.5% until 30 April 2022.(*updated Apr 21)
The changes have been brought in as an urgent response to the coronavirus (COVID-19) pandemic, its a way to support businesses severely affected by forced closures and social distancing measures.

 

Well the headline reads temporary 5% VAT reduction for hospitality and attractions, who does that really apply to?

This applies to organisations that make supplies of hospitality, hotel and holiday accommodation and admissions into certain attractions.
That means you can claim the 5% VAT reduction on park or attraction tickets income as well as for food and beverage outlets, including cafes, kiosks and restaurants across your attractions. Please remember this does not apply to alcoholic beverages.

 

What classes as affected supplies?

• 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

 

Which attractions are eligible for VAT reduction on admissions charges?

This applies to businesses that make supplies of admissions that are currently taxable at the standard rate. This includes:

• Fairs
• Amusement parks
• Museums
• Zoos
• Cinemas
• Exhibitions
• Similar cultural events and facilities

Examples of where the reduced rate may apply could be attractions such as:

• A planetarium
• Botanical gardens
• Studio tours
• Factory tours

See the full list here:

https://www.gov.uk/guidance/vat-on-admission-charges-to-attractions