In order to support the cash flow and viability of around 150,000 businesses and to protect over 2.4 million jobs, the Government has applied a temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors, which will now end on 30 September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent will be introduced for these goods and services to help affected businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.<\/p>
<\/p>
The Government has been clear that the reduced rate of VAT is a temporary measure. It is right that, as restrictions are lifted and demand for goods and services in the tourism and hospitality sectors increases, this relief is reduced and eventually removed in order to rebuild and strengthen the public finances. This policy will cost the Exchequer over £7 billion and, while the Government keeps all taxes under review, there are no plans to make the reduced rate of VAT permanent.<\/p>
<\/p>
VAT raised around £130 billion in 2019/20 and helps to fund key spending priorities. Any reduction in tax paid is a reduction in the money available to support important public services, including the NHS and policing. While all taxes are kept under review, any decision to grant new permanent VAT reliefs would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-09-10", "_datatype" : "dateTime"} , "groupedQuestionUIN" : [{"_value" : "37517"} , {"_value" : "41325"} ], "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-09-10T13:26:30.183Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-07-21", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "VAT: Coronavirus"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of a permanent reduction in VAT for (a) the travel industry and (b) other sectors affected by the ongoing covid-19 pandemic.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4471", "label" : {"_value" : "Biography information for Rachael Maskell"} } , "tablingMemberConstituency" : {"_value" : "York Central"} , "tablingMemberPrinted" : [{"_value" : "Rachael Maskell"} ], "uin" : "37518"} , {"_about" : "http://data.parliament.uk/resources/1314612", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1314612/answer", "answerText" : {"_value" : "
The Government has recently extended the grace period for the Returned Goods Relief (RGR) from one year to 18 months in light of the continuing travel restrictions in both the UK and the EU due to COVID-19. This extension to the grace period allows goods located in the EU at the end of the Transition Period to return to Great Britain by 30th June 2022, regardless of the date they left the UK.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-05-21", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-05-21T11:36:55.23Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-05-13", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "VAT: Coronavirus"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, with reference to the Answer of 15 April 2021 to Question178712, what assessment he has made of the potential merits of extending the grace period for Returned Goods Relief to 2023 to mitigate the effect of current covid-19 restrictions.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4058", "label" : {"_value" : "Biography information for Paul Blomfield"} } , "tablingMemberConstituency" : {"_value" : "Sheffield Central"} , "tablingMemberPrinted" : [{"_value" : "Paul Blomfield"} ], "uin" : "1049"} , {"_about" : "http://data.parliament.uk/resources/1312401", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1312401/answer", "answerText" : {"_value" : "
VAT is a broad-based tax on consumption and the standard rate of 20% normally applies to most goods and services, including PCR tests. However, medical testing administered by registered health professionals is exempt from VAT.<\/p>
The Government also continues to offer free Covid-19 testing for those with Covid-19 symptoms, and everyone in England, including those without symptoms, are able to take a free rapid coronavirus test twice a week.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"} } , "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"} , "answeringMemberPrinted" : {"_value" : "Jesse Norman"} , "dateOfAnswer" : {"_value" : "2021-04-29", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2021-04-29T08:25:11.133Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2021-04-27", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "VAT: Coronavirus"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, for what reason the VAT charge on PCR tests is 20 per cent.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4591", "label" : {"_value" : "Biography information for Sarah Olney"} } , "tablingMemberConstituency" : {"_value" : "Richmond Park"} , "tablingMemberPrinted" : [{"_value" : "Sarah Olney"} ], "uin" : "188136"} , {"_about" : "http://data.parliament.uk/resources/1287196", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1287196/answer", "answerText" : {"_value" : "
Approximately 600,000 payments were deferred to the value of £34 billion through the VAT payments deferral scheme, which ended on 30 June 2020. As part of the Winter Economy Plan, the Government announced further support for those with deferred VAT. Instead of paying the full deferred VAT outstanding by 31 March 2021, businesses can spread what they owe over up to 11 smaller monthly payments. More information is available at www.gov.uk/hmrc/vat-deferral<\/a>.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2021-03-01", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2021-03-01T14:36:03.827Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2021-02-19", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "VAT: Coronavirus"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of deferring the VAT payments due by 31 March 2021 for businesses worst affected by the covid-19 lockdown restrictions.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4763", "label" : {"_value" : "Biography information for Fay Jones"}
}
, "tablingMemberConstituency" : {"_value" : "Brecon and Radnorshire"}
, "tablingMemberPrinted" : [{"_value" : "Fay Jones"}
], "uin" : "155391"}
, {"_about" : "http://data.parliament.uk/resources/1285146", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1285146/answer", "answerText" : {"_value" : " The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.<\/p> <\/p> In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.<\/p> <\/p> The Government keeps all taxes under review, and any future tax decisions will be made at Budget.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2021-02-22", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2021-02-22T16:03:47.833Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2021-02-09", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "VAT: Coronavirus"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the temporary VAT reduction for the (a) hospitality sector and (b) other sectors that are most financially affected by the covid-19 outbreak.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/3966", "label" : {"_value" : "Biography information for Ian Murray"}
}
, "tablingMemberConstituency" : {"_value" : "Edinburgh South"}
, "tablingMemberPrinted" : [{"_value" : "Ian Murray"}
], "uin" : "151663"}
, {"_about" : "http://data.parliament.uk/resources/1282016", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1282016/answer", "answerText" : {"_value" : " The Government continues to make timely decisions to support businesses throughout the COVID-19 pandemic.<\/p> <\/p> Approximately 600,000 payments were deferred to the value of £34bn through the VAT payments deferral scheme, which ended on 30 June 2020. As part of the Winter Economy Plan, the Government announced further support for those with deferred VAT. Instead of paying the full deferred VAT outstanding by 31 March 2021, businesses can spread what they owe over up to 11 smaller monthly payments. More information is available at www.gov.uk/hmrc/vat-deferral<\/a>.<\/p> <\/p> There are currently no plans to launch another VAT deferral scheme.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2021-02-04", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2021-02-04T16:58:49.15Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2021-01-29", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "VAT: Coronavirus"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of further business VAT deferrals in response to the ongoing covid-19 outbreak; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4470", "label" : {"_value" : "Biography information for Alan Brown"}
}
, "tablingMemberConstituency" : {"_value" : "Kilmarnock and Loudoun"}
, "tablingMemberPrinted" : [{"_value" : "Alan Brown"}
], "uin" : "145814"}
, {"_about" : "http://data.parliament.uk/resources/1281773", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1281773/answer", "answerText" : {"_value" : " The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.<\/p> <\/p> In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.<\/p> <\/p> The Government keeps all taxes under review; future tax decisions will be made at Budget.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/3991", "label" : {"_value" : "Biography information for Jesse Norman"}
}
, "answeringMemberConstituency" : {"_value" : "Hereford and South Herefordshire"}
, "answeringMemberPrinted" : {"_value" : "Jesse Norman"}
, "dateOfAnswer" : {"_value" : "2021-02-02", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2021-02-02T15:31:02.767Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "14"}
, "answeringDeptShortName" : {"_value" : "Treasury"}
, "answeringDeptSortName" : {"_value" : "Treasury"}
, "date" : {"_value" : "2021-01-28", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "VAT: Coronavirus"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Chancellor of the Exchequer, if he will extend the VAT cut for the hospitality sector (a) beyond 31 March 2021 and (b) to other covid-19-affected sectors.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4827", "label" : {"_value" : "Biography information for Claire Hanna"}
}
, "tablingMemberConstituency" : {"_value" : "Belfast South"}
, "tablingMemberPrinted" : [{"_value" : "Claire Hanna"}
], "uin" : "145179"}
, {"_about" : "http://data.parliament.uk/resources/1278622", "AnsweringBody" : [{"_value" : "Treasury"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1278622/answer", "answerText" : {"_value" : " The VAT payments deferral scheme ended on 30 June 2020, as planned. There are no current plans to launch another VAT deferral scheme.<\/p> <\/p> As part of the Winter Economy Plan, the Government announced further support for those with deferred VAT. Instead of paying the full deferred VAT outstanding by 31 March 2021, businesses can spread what they owe over up to 11 smaller monthly payments.<\/p> <\/p>