VAT: Coronavirus

(asked on 28th January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will extend the VAT cut for the hospitality sector (a) beyond 31 March 2021 and (b) to other covid-19-affected sectors.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 2nd February 2021

The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.

In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.

The Government keeps all taxes under review; future tax decisions will be made at Budget.

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