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Hospitality and Accommodation: VAT Set to Increase to 12.5% from 1 October

Published on: 23 September 2021

River restaurant 230921

British Marine is reminding its members that from 1 October 2021 the reduced rate of value-added tax (VAT) for hospitality and accommodation providers will be replaced by the introduction of the new and increased 12.5% VAT rate. This new rate will then remain in effect until 31 March 2022. 

Currently providers of hospitality and accommodation can charge 5% VAT. However, this will now change from the start of October - and members offering these services must make sure they charge the correct 12.5% VAT rate. 

Members can find out more by revisiting the guidance published earlier this year.