Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to allow refunds of VAT to be claimed where paid in advance at the standard rate covering the period of the newly introduced VAT reduction between 15 July 2020 and 12 January 2021 for (a) caravan site fees and (b) other businesses in the hospitality and hotel and holiday accommodation sector; and if he will make a statement.
All businesses that benefit from the temporary reduced rate are able to apply the reduced rate to advance bookings that take place between 15 July 2020 and 12 January 2021. The Government encourages businesses to pass on the saving wherever possible, but it is a decision for them whether to do that or to use the money to support their trading.
Further detail on the application of the reduced rate can be found in Revenue and Customs Brief: Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions, on GOV.UK: https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2020-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/guidance-on-the-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions