Great Britain – VAT rate for hotels to be increased from 5% to 12.5%

Until September 30th 2021, a 5% VAT rate had been applied to hospitality services (provision of sleeping accommodation in hotels, hostels, etc.) in order to boost the hotel industry economy following the impact of the health crisis (COVID-19).

Since 30th September 2021 and until 31st March 2022 a reduced VAT rate of 12.5% applies to hospitality services. After this date, hospitality services will again be subject to the 20% rate.

For more information see the HMRC notice.