In line with the UK budget announcement today 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.
On the 15 July 2020 a temporary 5% reduced VAT rate was introduced for certain supplies of hospitality and admissions to certain attractions. These changes were brought in to support businesses in these industries affected by measures introduced as a response to the coronavirus pandemic.
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.
Further information on the application of the 5% VAT rate can be found on the Customs and Excise website or via these links:
Anyone who has any questions regarding the extension to the 5% VAT rate should contact Isle of Man Customs and Excise on 648130.