The rate of VAT to certain supplies relating to hotel and holiday accommodation, hospitality and admission to specific attractions has reverted to its original rate of 20%.

A reduced rate of 5% was introduced by the Government in July 2020, to support the industry during the pandemic, this was then increased to 12.5% on 1 October 2021.

The Flat Rate Scheme (FRS) percentages for hospitality and leisure businesses have also now increased, so if you use FRS do check your relevant percentage. Also be aware that the percentages you apply may change part-way through your VAT period.

Businesses should ensure that they review their systems and transactions to ensure the correct rate of VAT is applied to invoices; payment and receipts; quotes; bank feeds; and products and services.

For any queries relating to VAT for the leisure and hospitality industry, please get in touch with your usual M+A Partners contact, or email

Written by

Mary-Anne Sargeant

Mary-Anne Sargeant has been the Partner of our Attleborough office since 2010. Mary-Anne and her team provide professional accountancy and tax advice for a broad spectrum of clients, from brand new start-ups to well established family and owner managed businesses and from private individuals to companies.

Find out more about our Attleborough office here.