Covid-19 – Support for the hospitality and tourism industries extended 7th December 2020 In response to the continuing Coronavirus health emergency, the Government has extended the period during which the reduced rate of VAT will apply to the hospitality and tourism industries. The reduced rate of VAT, which came into force on 15 July 2020, will continue to apply until 31 March 2021. As a result, VAT at 5% will be due on eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. The reduced rate also applies to all holiday accommodation, plus attractions such as cinemas, theme parks and zoos. If you would like guidance on how the reduced rate of VAT affects your business please email your normal Whiting and Partners contact.