The reduced 9% VAT rate for tourism, hospitality and some other services will expire at midnight on 31st August 2023 and return to 13.5%.
The 13.5% rate was lowered to 9% in November 2020 to help stimulate activity in the tourism and hospitality sectors during the pandemic.
This reduced rate was due to revert back to the higher rate earlier this year, but it was extended in February 2023 for restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter such as brochures, leaflets, programmes and catalogues. From midnight tonight the rate on these services will revert to 13.5%.
The reduced 9% VAT rate on gas and electricity is not due to expire until 31 October 2023.