Does the VAT cut apply to weddings?

Nope. The VAT on food supplied by a caterer has been reduced from the standard rate of 20% to a reduced rate of 5%.

Are wedding venues VAT exempt?

An estranged position. BCH has added a further dimension to the room hire debate; that public access to the ceremony must be permitted, so a marriage ceremony in licensed premises can never be exempt from VAT. The tribunal considered the size of the fee for the room to be relevant because it is a licensed venue.

Who does VAT reduction apply to?

The reduced rate of VAT will apply to:

hot / cold food and non-alcoholic beverages for consumption on the business premises, for example, cafes, restaurants and pubs. Cold takeaway food continues to be subject to VAT at 20% or 0% under the existing rules. hot takeaway food and hot takeaway non-alcoholic drinks.

Does 5% VAT apply to weddings?

HMRC has suggested that the 5% rate of VAT can only be applied where catering is provided by the owner of a venue without any of the other items listed. For example if only the wedding breakfast is provided.

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Is there VAT on venue hire?

Room hire is usually exempt from VAT unless the hirer has opted to tax. However, it can be subsumed into another supply in some circumstances. … The other things may be a separate supply made by the person letting the property, with each supply having its own VAT treatment.

Do you pay VAT on wedding food?

Nope. The VAT on food supplied by a caterer has been reduced from the standard rate of 20% to a reduced rate of 5%. But that only applies when the caterer supplies food to the end consumer. Our elopement and MMW weddings include wedding food as part of the package.

What does VAT reduction apply to?

The government announced on 8 July 2020 that it intended to legislate to apply a temporary 5% reduced rate of VAT to certain supplies relating to hospitality, hotel and holiday accommodation and admission to certain attractions.

Is VAT going up 2021?

The rate was reduced to 5% on 15 July 2020 as part of the government’s package of measures to help businesses during the COVID-19 pandemic. Finance Act 2021 includes clauses to increase the rate to 12.5% between 1 October 2021 and 31 March 2022, with the standard rate of 20% due to return from 1 April 2022.

What is the VAT rate on room hire?

Rooms hired out for the provision of catering in any hotel or similar establishment (whether or not the venue supplies that catering) are covered by the reduced rate. This makes both room hire and catering provided by a hotel for the same event subject to 5% VAT (excluding any alcoholic beverages served).

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What is covered by the 5% VAT?

The 5% measure will include: Supplies of sleeping accommodation in a hotel or similar establishment; “Certain supplies” of holiday accommodation; and. Fees for caravan pitches, pitching tents and their associated facilities.

Do hotel rooms charge VAT?

Hotels usually charge VAT (Value Added Tax) at a rate of 20% on UK hotel accommodation (reduced to 5% for the next 6 months). … This can sometimes mean that you don’t end up getting a VAT invoice/receipt, which means your company can not recover the VAT.

Can you claim VAT back on meeting room hire?

You can reclaim Value-Added Tax (VAT) incurred on accommodation in connection with the attendance by you or your representatives at a qualifying conference. You may reclaim the VAT where the accommodation is provided at the conference venue or at a different location.

Do charities pay VAT on room hire?

Hotels may sometimes find that charities claim exemption from VAT on room hire for events. This exemption only applies if the charity uses the land solely for its charitable purposes, and a certificate to this effect must be given before the supply of land takes place. …

Is outside catering VATable?

Although food is often zero-rated for VAT, food and drink supplied as part of a contract catering service is always standard rated. … You will then have to charge VAT at the standard rate of 20% on your supplies of catering – this is known as ‘output tax’.