2020 No. 728
Value Added Tax
The Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020
Made 13th July 2020
Laid before the House of Commons 14th July 2020
Coming into force 15th July 2020

The Treasury make the provisions in articles 1 to 4 of this Order in exercise of the powers conferred by sections 29A(3) and (4) and 96(9) of the Value Added Tax Act 1994.
1994 c. 23. Section 29A was inserted by section 99(4) of the Finance Act 2001 (c. 9); section 96(9) was amended by section 99(6) of, and paragraph 5 of Schedule 31 to, the Finance Act 2001.
The Commissioners for Her Majesty’s Revenue and Customs make the provisions in articles 1, 5 and 6 of this Order in exercise of the powers conferred by section 26B of the Value Added Tax Act 1994.
Section 26B was inserted by section 23(1) and (4) of the Finance Act 2002 (c. 23).

1 Citation and commencement
This Order may be cited as the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 and comes into force on 15th July 2020.

Modifications of Schedule 7A to the Value Added Tax Act 1994
2 The following modifications of Schedule 7A to the Value Added Tax Act 1994 (charge at reduced rate) have effect in relation to the period beginning with 15th July 2020 and ending with 12th January 2021.
Schedule 7A was inserted by section 99(5) of, and paragraph 1 of Schedule 31 to, the Finance Act 2001. There are amendments to Schedule 7A but none are relevant to this Order.
3 Part 1 (index to reduced-rate supplies of goods and services) has effect as if, at the appropriate places, there were inserted—

“Course of catering	Group 14
Holiday accommodation etc	Group 15
Shows and certain other attractions	Group 16”

4 Part 2 (the groups) has effect as if, at the end, there were inserted—

“GROUP 14 - COURSE OF CATERING
Item No
1 Supplies in the course of catering of—
(a) any food or drink for consumption on the premises on which it is supplied, or
(b) any hot food or hot drink for consumption off those premises,
except supplies of alcoholic beverages.
NOTES
1 Note (3A) to Group 1 (Food) of Schedule 8 applies in relation to this Group as it applies in relation to Note (3) in that Group.
2 Notes (3B) to (3D) to Group 1 (Food) of Schedule 8 apply in relation to this Group as they apply in relation to that Group.
Notes (3A) to (3D) to Group 1 of Schedule 8 were inserted by section 196 of, and paragraphs 1 and 2 of Schedule 26 to, the Finance Act 2012 (c. 14).
3 “Alcoholic beverage” means a beverage within Item 3 in the list of excepted items in Group 1 of Schedule 8.
GROUP 15 - HOLIDAY ACCOMMODATION ETC
Item No
1 Any supply which, because it falls within paragraph (d), (e) so far as the supply consists of the grant of a licence to occupy holiday accommodation, (f) or (g) of Item 1 in Group 1 (Land) of Schedule 9, is not an exempt supply by virtue of that Item.
GROUP 16 - SHOWS AND CERTAIN OTHER ATTRACTIONS
Item No
1 Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities but excluding any supplies that are exempt supplies by virtue of Items 1 or 2 in Group 13 of Schedule 9.
“Holiday accommodation” is defined in Note (13) to Group 1 of Schedule 9.
Group 1 of Schedule 9 was amended by S.I. 1995/282, 2012/58, and section 196 of, and paragraph 5 of Schedule 26 to, the Finance Act 2012; there are prospective amendments but none are relevant.
Group 13 of Schedule 9 was inserted by S.I. 1996/1256.”

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Modifications of regulation 55K of the Value Added Tax Regulations 1995
5 The following modifications of regulation 55K of the Value Added Tax Regulations 1995 (flat-rate scheme for small businesses: category of business) have effect in relation to the period beginning with 15th July 2020 and ending with 12th January 2021.
S.I. 1995/2518; amended by S.I. 2002/1142, 2003/1069, 2003/3220, 2007/1418, 2009/586, 2010/2240, 2010/2940, and 2017/295; there are other amending instruments but none are relevant.
6 The Table has effect as if, in the second column—
(a) in the entry for “Catering services including restaurants and takeaways”, for “12.5” there were substituted “4.5”;
(b) in the entry for “Hotel or accommodation”, for “10.5” there were substituted “0”;
(c) in the entry for “Pubs”, for “6.5” there were substituted “1”.
David Rutley James Morris Two of the Lords Commissioners of Her Majesty’s Treasury 13th July 2020
Melissa Tatton Ruth Stanier Two of the Commissioners for Her Majesty’s Revenue and Customs 13th July 2020

EXPLANATORY NOTE
(This note is not part of the Order)
This Order modifies Schedule 7A to the Value Added Tax Act 1994 (charge at reduced rate) (“Schedule 7A”) by inserting new Groups to provide for a temporary reduced rate for certain supplies in the course of catering, holiday accommodation and admission to shows and other attractions.
It also makes temporary consequential changes to the percentages in the Table setting out the percentage rates for the various categories of business entitled to use the flat-rate scheme for small businesses in regulation 55K of the Value Added Tax Regulations 1995 (S.I. 1995/2518) to reflect the temporary reduced rate.
The relief is introduced in response to the coronavirus health emergency by way of time-limited modifications. The relief and the consequential changes to the flat-rate scheme both have effect for the period from 15th July 2020 to 12th January 2021.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.