Q&A: VAT impact on vouchers | Accountancy Daily
Q. My client operates a luxury hotel in the UK. They have recently reopened and will now recommence selling face value gift vouchers. The holder can redeem their vouchers against room reservations, dining at the restaurant/bar and when using the leisure and spa facilities. The restaurant does not offer a takeaway service. Historically the client has always charged VAT at the standard rate on all their supplies. Could you please clarify the impact of the temporary rate change on the issue of face value vouchers? When will the VAT be due and at which rate?
A. From 15 July 2020 a new temporary reduced rate (5%) was introduced for sleeping accommodation in hotels and similar establishments, on-premises catering services, hot takeaway food and drink and admissions to certain attractions. This rate can be applied until 12 January 2021. For further guidance click this link for affected supplies.
