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The rate of VAT on food, accommodation and entry fees to attractions is scheduled to increase from 5% to 12.5% from 1 October 2021.

The rate was reduced to 5% in July 2020 as part of the government's package of measures to help businesses during the COVID-19 pandemic. Finance Act 2021 includes clauses to increase the rate to 12.5% between 1 October 2021 and 31 March 2022, with the standard rate of 20% due to return from 1 April 2022. These clauses can however be amended by Treasury Regulation should the Chancellor decide to extend the rate cut at any time.

The Reduced rate applies to supplies of:

Useful guides on this topic

COVID-19: Reduced rate VAT
The temporary cut to the rate of VAT on food, accommodation and entry fees to attractions from 20% to 5%, introduced on 15 July 2020, is extended by Finance Act 2021 until 30 September 2021.

COVID-19: VAT payments
COVID-19 VAT payment deferral measures for VAT registered business.

Food: Catering and takeaway
There is sometimes confusion as to how food is treated for VAT purposes. If the food is purchased from a supermarket, one rule may apply. If the same food is bought from a café a different rule could apply.


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