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Vat change for hospitality accommodation

Vat rate change and advance invoicing

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Can businesses invoice in advance ie have invoiced before 30/9/21 at 5% before vat rate changed on 1/10/21 to 12.5% for a service provided next year? Ie holiday accompdation provider?

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By David Ex
04th Oct 2021 19:57

I think the answer was yes every time the question has been asked. There’s even an article that someone linked. Have you searched the site?

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Replying to David Ex:
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By mcmud
04th Oct 2021 20:53

Yes did a search and couldn’t find any

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By Hugo Fair
04th Oct 2021 22:02

Likewise ... although I do recall the threads.
I think the gist of them was:
* VAT is normally applicable as at the date of supply;
* So invoicing for the deposit pre-Sep 30th might be OK for the 5% rate;
* And invoicing later for the rest of the fee would be at the rate then in force.
But you really need an answer from one of the VAT experts on here!

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Jason Croke
By Jason Croke
05th Oct 2021 09:09

As others have already posted, there was no anti-forestalling legislation when the reduced rate was applied to hospitality/catering and so we just apply the normal tax point rules.

So yes, it is possible for someone to pay in September 2021, for an event or hotel stay in September 2022/23 and still get the reduced rate at 5%.

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Replying to Jason Croke:
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By mcmud
05th Oct 2021 19:02

Thank you

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