A guide to reduced VAT for holiday accommodation providers Category: Leisure - Posted On: Dec 16 2020 When the temporary VAT reduction was put in place in July, it was welcomed by the tourism industry. However, it was introduced very quickly and left many accommodation providers confused on how to charge VAT on their bookings. VAT legislation can be tricky, and although the rate used is usually based on when the good or service is provided, there are ways it can be moved, and some can even override others. Transitional rules are designed to explain what happens when a rate changes so can be applicable at both the start and end of the period. An example would be if an August 2021 stay was booked and paid for in March 2021 then the reduced rate of 5% could apply even though the stay is after the rate returns to 20%. We’ve created a flowchart to help you understand what rate of VAT you should be charging. There are plenty of benefits to be had well into 2021. A booking being paid in March instead of April could mean an extra 11.9p in your pocket for every £1. As with most tax rules there are nuances and other factors to consider, so it is important to get advice to be sure you are using the correct rate. Our specialist EQ Leisure team would be happy to discuss your circumstances and ensure you are applying the correct VAT rate on your transactions. For advice from our leisure experts, get in touch via leisure@eqaccountants.co.uk or call one of our offices. Alternatively, for any VAT queries, you can contact our VAT Taxperts via taxation@eqaccountants.co.uk. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology
A guide to reduced VAT for holiday accommodation providers Category: Leisure - Posted On: Dec 16 2020 When the temporary VAT reduction was put in place in July, it was welcomed by the tourism industry. However, it was introduced very quickly and left many accommodation providers confused on how to charge VAT on their bookings. VAT legislation can be tricky, and although the rate used is usually based on when the good or service is provided, there are ways it can be moved, and some can even override others. Transitional rules are designed to explain what happens when a rate changes so can be applicable at both the start and end of the period. An example would be if an August 2021 stay was booked and paid for in March 2021 then the reduced rate of 5% could apply even though the stay is after the rate returns to 20%. We’ve created a flowchart to help you understand what rate of VAT you should be charging. There are plenty of benefits to be had well into 2021. A booking being paid in March instead of April could mean an extra 11.9p in your pocket for every £1. As with most tax rules there are nuances and other factors to consider, so it is important to get advice to be sure you are using the correct rate. Our specialist EQ Leisure team would be happy to discuss your circumstances and ensure you are applying the correct VAT rate on your transactions. For advice from our leisure experts, get in touch via leisure@eqaccountants.co.uk or call one of our offices. Alternatively, for any VAT queries, you can contact our VAT Taxperts via taxation@eqaccountants.co.uk. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology