KPMG Webinar: VAT rate reduction for the hospitality sector

Yesterday Rishi Sunak announced a major UK VAT rate reduction impacting all businesses in the hospitality and leisure sector. Please see below for details and information of a Lunch and Learn invite for Friday 10 July 2020.

VAT rate reduction for the hospitality sector

It has just been announced that from Wednesday 15 July 2020 until 12 January 2021 VAT has been reduced on food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises. In addition there is also a VAT rate reduction during the same period for accommodation and other attractions. The VAT rate is therefore being reduced from 20% (the standard-rate) to 5% (the reduced rate) and will apply across the UK for impacted businesses. Whilst we have limited details at this stage, HMRC have confirmed that further guidance on the scope of this relief will be published in the coming days.

In addition, there is a “Eat Out to Help Out” scheme to encourage people to return to restaurants. This will entitle every customer to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.

Lunch and Learn invite

In response to this, we are delighted to invite you to a Leisure and Hospitality lunch & learn session which is scheduled to take place at 12:30 – 1:30pm on Friday 10July 2020. Please see below for a link to register for the session.  

The rules are to be brought in with less than a week’s preparation and our agenda will broadly cover the following:

1. What will the VAT rate cover? We will outline what subject to the reduce VAT rate and the new “Eat Out to Help Out” scheme.
2. How to update accounting systems? Accounting systems and processes will need to be updated to reflect the changes as soon as possible.
3. Other areas of considerations? There will need to be careful consideration to the VAT treatment of vouchers, transitional rules (pre and post VAT rate change), tax points, refunds and other relevant areas.

I’m sure this will be of interest to you and your colleagues, so please follow the link below to register, and we will be in touch shortly with a calendar diary hold and joining details.  The session will be hosted via TEAMs, which can be accessed via a webpage browser or through the application itself.  Please note that space is limited on Teams so quick registration is advisable.

Leisure & Hospitality sector – Webinar details: UK VAT Rate reduction – be prepared!