What is the temporary VAT rate?

Lockdown had a serious impact on businesses in the tourism and hospitality sector. To aid their recovery, the VAT rate has been temporarily reduced, and will increase in stages until it returns to normal levels.

The VAT rate for businesses in the tourism and hospitality sector will be 12.5% from 1st October 2021 until 31st March 2022.

If you are VAT registered, and ‘make a supply’ of the items listed below between 1st October 2021 and 31st March 2022, charge VAT at 12.5%.

  • Food or non-alcoholic drinks which are sold and consumed on the premises (restaurants, cafes and pubs, for instance)

  • Hot takeaway food and non-alcoholic drinks

  • Sleeping accommodation which includes hotels and B&Bs or similar

  • Holiday accommodation

  • Pitch fees for caravans and tents, and associated facilities

To reflect these changes, we have introduced a temporary workaround for Pandle users.

How do I show the temporary VAT rate in Pandle?

If you are affected by the temporary VAT rate changes, please select the RR (Reduced Rate) tax code when entering invoices in Pandle.

The amount in the Tax field will be populated automatically using the RR tax code, so you will need to overwrite this amount manually to reflect the 12.5% temporary rate.

Select the amount, and enter the new value to replace it. Then save your invoice as normal.

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