Is VAT going up 2021?
The new rate of VAT for the tourist and hospitality industry will be 12.5% from 1 October 2021 to 31 March 2022. … It was due to revert to 20% from 1 April 2021. The industry will be pleased with the six-month extension of the 5% rate and the half-way house of 12.5% until we’re back to 20% as normal on 1 April 2022.
Is VAT rate going to change?
The Chancellor announced at Budget 2021 that the temporary reduced rate of 5% will be extended to 30 September 2021. From 1 October 2021 the reduced rate for these supplies will be replaced by the introduction of a new reduced rate of VAT of 12.5% which will remain in effect until 31 March 2022.
Is UK VAT going to change?
The good news is that VAT registered UK businesses will continue to be able to sell goods to EU customers with zero rates. From 1 January 2021, EU member states will treat these goods the same way that they would goods entering from any other non-EU country, charging import taxes upon arrival.
Is VAT going to be abolished?
In theory the UK could abolish VAT after Brexit, but in practice it is very unlikely. … The government’s technical guidance for businesses preparing for the end of transition indicates the government plans to continue to have a VAT system in the UK.
What is the VAT for 2021?
The reduced rate of 5% VAT will continue to apply until 30 September 2021, before increasing to a transitional rate of 12.5% and finally returning to 20% from 1 April 2022.
Who pays VAT buyer or seller?
You must account for VAT on the full value of what you sell, even if you: receive goods or services instead of money (for example if you take something in part-exchange) haven’t charged any VAT to the customer – whatever price you charge is treated as including VAT.
What are the new rules on VAT?
From 1 March 2021, new ‘reverse charge VAT accounting’ rules apply to all qualifying supplies made on or after that date. This means that: Suppliers of goods or services are no longer be involved in the payment of VAT to HMRC. The liability for VAT payment is now be with the VAT registered customer.
Is VAT still 5 for hospitality?
The UK government has confirmed that the temporary reduced rate of 5% VAT for the tourism and hospitality sector will be extended to until 30 September 2021.
Will VAT rules change after Brexit?
Domestic VAT rules remain the same following the end of the Brexit transition period. However, VAT rules relating to imports and exports to and from the EU have changed. … However, as of 1 January 2021, businesses in Great Britain now treat EU countries like they already do countries outside the EU.
What is the new VAT rate in UK?
From 15th July 2020 to 30th September 2021, a reduced rate of 5% VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafes and similar premises. The same reduction will apply over the same time period to the supply of accommodation and admission to attractions.