Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 September 2020 to Question 84292 on Hospitality Industry: VAT, whether a company that has paid VAT at 20 per cent in advance for services that fall within the discount rate period that started on 15 July 2020 can claim the 15 per cent differential back from HMRC in subsequent VAT returns.

The Chancellor of the Exchequer announced on 24 September 2020 that the temporary reduced rate for tourism and hospitality will be extended to 31 March 2021. This measure has been extended to support the cash flow and viability of businesses in the hospitality and tourism sectors.

All businesses that supply services which benefit from the temporary reduced rate are able to apply the reduced rate to advance bookings that take place between 15 July 2020 and 31 March 2021 and can make any necessary adjustments in subsequent VAT returns.