Date01 Apr 2022
CategoryVAT & Indirect Tax, Advisory
Reduced rates of VAT were introduced by the Government during the COVID-19 pandemic to boost income and keep businesses afloat. The reduced rate of VAT affected the following businesses:
The initial use of the 5% rate ended on 30 September 2021. Following this, the VAT rate of 12.5% was introduced and the application of that rate ended on 31 March 2022.
From 1 April 2022 the standard rate of 20% VAT will again be applicable to supplies of hospitality, hotel and holiday accommodation and admissions to certain attractions and events. Businesses that currently apply the reduced rate must ensure that they are compliant with the VAT rate change to 20% from 1 April 2022. This may require businesses to make changes and refinements to their VAT accounting procedures and financial models.
Our team of VAT experts can help ensure the correct rate has been applied to historic and future supplies to ensure you remain compliant.
If you have any questions on these changes please get in touch with your local Azets advisor or one of our VAT specialists.