|Update:||Compliance Alert - Extension of the Reduced VAT Rate for Tourism and Hospitality Sector|
Currently, the reduced 5% VAT rate is possible to apply to certain supplies for businesses within tourism and hospitality sectors until 31 March 2021.
However, following the announcement of the new budget for the UK on 3 March 2021, this deadline will be extended to 30 September 2021.
After 30 September 2021, a new VAT rate of 12,5% will be applied until 31 March 2022.
Regarding the VAT registration threshold, it will remain at £85,000 (EUR 99.310) up until at least 31 March 2024.
In addition, the new penalty regime for the late VAT payment and submission returns for VAT is planned to commence by 1 April 2022.