- Government introduced temporary reduced VAT rate for specific sectors in response to 2020 pandemic
- Reduced VAT rate of 5% effective from July 2020 to September 2021, then increased to 12.5% until March 2022, and reverted to 20% from April 2022
- Reduced rate covered food and non-alcoholic beverages, hotel and holiday accommodation, certain attractions
- Businesses have 4 years from end of relevant VAT return period to adjust over-declared output VAT
- Missing deadlines will result in loss of chance to recover overpaid VAT
- Potential for discrepancies in supplies, payments, or invoices due to VAT rate changes during pandemic
- Review VAT returns from affected periods to ensure accuracy and reclaim any overpaid VAT before 4-year limit expires
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
