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VAT rate change for hospitality and tourism sector

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Revert VAT rate for hospitality back to Standard 20% in Accounting Start.


About the changes

The UK VAT rate on hospitality, holiday accommodation and attractions is changing back to the Standard (STD) 20% VAT rate from the 1st of April 2022.

Transactions, where you have been using the 12.5% rate, will now be at the Std rate of 20%. VAT.

For detailed information about what's included, see the Government support page on VAT-reduced rates for hospitality, holiday accommodation and attractions.

What do I need to check?

Here is a list of all the different areas and transactions that you may need to update. If you think an area applies to your business, select below for more information.

Categories: Update any categories that use a default VAT rate of Lower Rate 2 12.5% to Standard 20%.

Recurring payments and receipts: If you have set up recurring Payments or Receipts that use the 12.5% rate, you must change them before they next recur on, or after, the 1st of April 2022.

Bank feeds and bank statement imports: Update your bank rules and make sure any bank transactions from bank feeds or bank statement imports that relate to hospitality, holiday accommodation and attractions, use the Standard 20% rate. Do this the first time you import transactions from a bank feed or bank statement after the 1st of April 2022.

Copying invoices and credit notes: If you have copied existing transactions that use the 12.5% rate, change the VAT rate applied before saving the invoice.

Flat Rate VAT: If you use Flat Rate VAT, the percentages you apply may change part-way through the VAT period. Check for any changes when you calculate VAT payments after the rate change.

Future-dated transactions: Check for transactions dated after the 1st of April 2022 that use the 12.5% rate and update them to use the 20% VAT rate.

Future-dated transactions

If you've entered a transaction that's dated after the 1st of April 2022, and it relates to hospitality, holiday accommodation and attractions, you may need to change the VAT rate to Standard 20%.

The quickest way to see future-dated transactions is to run the Category Activity report.

  1. From Reports, select More.
  2. Select Category Activity.
  3. For the Period choose Custom.
  4. Change the From date to 01/04/2022.
  5. Change the To date to 31/03/2023.
  6. Click Calculate.
     TIP: If you have no values in the Total Debits this period and Total Credits this period columns then you have no future dated transactions. 

  7. Select Export Detailed.
  8. Confirm you want to Export All Accounts.
  9. To save or print the report, from the Export menu, and then select CSV or PDF.

The report is ready when a notification displays on the main navigation bar, to the left of Profile. Select the notification bell to open the report.Image


This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example, to ensure that the results obtained from using our software comply with statutory or regulatory requirements.

For VAT, customs and excise and duties enquiries you should call the HM Revenue and Customs (HMRC) National Advice Service Helpline on 0300 200 3700, contact your local HMRC office or visit their website at In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.