UK HMRC Publishes Guidance on Temporary VAT Rate Cut for Restaurants, Pubs, Accommodation, and Attractions

UK HMRC has published a policy paper, Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions. The policy paper, dated 9 July 2020, explains the temporary reduction in the VAT rate to 5% for such supplies that was announced by Chancellor of the Exchequer Rishi Sunak in his Summer Economic Update in Parliament.

The guidance has also been referenced by the Isle of Man Treasury, which is providing the same VAT reduction, although a 5% rate is alrea…