5% VAT on Tourism Services!
The Cut Tourism VAT Campaign is absolutely delighted that the Government has introduced 5% VAT on tourism services for a six month period from 15 July 2022 to 12 January 2021.
Whilst it has taken a global pandemic to bring this about, 27 years of compiling the most robust economic evidence has undoubtedly convinced the Treasury that this was an ‘oven-ready’ measure to counter the devastation caused by Covid-19, encouraging UK residents to enjoy domestic short breaks and days out and supporting a vital industry that has been particularly hammered.
The Campaign will lobby the government to make this measure permanent. Countless studies have demonstrated that temporary reductions in tourism VAT do not bring about the long-term benefits that are to be had from reduced VAT – benefits enjoyed by every other European country (except one).
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