5% VAT on hospitality services until end of September

Thu, 04 Mar 2021

The temporary reduced rate of 5% VAT on hospitality services and admissions to certain attractions, which was due to end on 31 March, will remain in place until 30 September 2021.

From 1 October 2021 the VAT rate on those services will increase to 12.5% for 6 months.

It follows the announceent of the UK budget by Chancellor Rishi Sunak yesterday.

In addition, there will be no increases in the current rate of duty on alcohol, tobacco products or fuel.

The Treasury Minister confirmed that the extension to the reduced rate of VAT is in line with the Isle of Man’s Customs and Excise Agreement with the UK and fully supports the aim of providing further assistance to the hospitality sector in the Isle of Man.