VATupdate

Share this post on

VAT rate change for the hospitality sector

  • The VAT rate for the tourism and hospitality sector was temporarily reduced from 13.5% to 9% due to COVID-19. This decrease was initially in effect from November 1, 2020 to December 31, 2021, but has been extended multiple times, with the most recent extension until August 31, 2023.
  • However, starting from September 1, 2023, the 9% rate will no longer apply to certain supplies in the tourism and hospitality sector, and the 13.5% rate will be reinstated.
  • The supplies affected by this VAT increase include certain food and beverages in restaurants, cafes, and takeaways, admissions to certain attractions, hotel and accommodation services, and hairdressing services.
  • Other supplies like printed matter and sporting facilities by profit-making bodies are not impacted. Businesses should consider the impact on pricing, operations, and ERP systems.
  • They need to ensure invoices are issued at the correct rate, maintain the ability to issue credit notes at 9%, and note the applicable VAT rate on advance payment invoices.

Source RSM

See also

Sponsors:

VAT news

Advertisements: