HMRC has responded to a number of queries raised by the Association of Taxation Technologies (ATT) regarding the temporary 5% reduced rate of VAT for holiday accommodations and admission to attractions for the period 15 July 2020 to 12 January 2021. The ATT raised a number of questions regarding the scope and operation of the temporary reduced rate. HMRC’s response clarifies a number of areas including: the scope of ‘alcoholic beverages’s, promotional offers, the meaning of ‘premises’ for the consumption of food and non-alcoholic drinks, the tax point for services in relation to holiday accommodation, the scope of ‘admission to attractions’, interaction with rules on vouchers and the flat rate scheme.
HMRC has responded to a number of queries raised by the Association of Taxation Technologies (ATT) regarding the temporary 5% reduced rate of VAT for holiday accommodations and admission to attractions for the period 15 July 2020 to 12 January 2021. The ATT raised a number of questions regarding the scope and operation of the temporary reduced rate. HMRC’s response clarifies a number of areas including: the scope of ‘alcoholic beverages’s, promotional offers, the meaning of ‘premises’ for the consumption of food and non-alcoholic drinks, the tax point for services in relation to holiday accommodation, the scope of ‘admission to attractions’, interaction with rules on vouchers and the flat rate scheme.
