VAT reduced to 5% for Travel & Hospitality

[Alice Disney]

It was announced today that VAT will be reduced from 20% down to 5% for Travel & Hospitality from next Weds until Jan 2021.

Does anybody know how this will effect those of us currently planning trips?

If already booked & part paid, will we still pay 20% VAT on the balance?

Will new bookings be quoted at the lower cost from next Weds?

If we book & pay for a flight during the 5% period but don't actually fly until later in the year, what VAT rate will we be charged?

I'm totally clueless so any info would be gratefully received.
Thanks

[arhclo]

Air travel is already zero rated so is not impacted

[Alice Disney]

Told you I was clueless haha
thanks for the info

[darsch1982]

We are going center parks and I would like to know the same

[BevS97]

BBC says:

Providers will not refund those who have booked and paid for accommodation later in the summer, because the rate is for when the sale was made.

[Rich accountant]

Originally Posted by BevS97

BBC says:

Providers will not refund those who have booked and paid for accommodation later in the summer, because the rate is for when the sale was made.

See more...

Yes I think that is correct. Vat point is earlier of cash receipt or invoice date normally

[darsch1982]

I've only paid à deposit and fully refundable so if they do reduce price I might cancel and rebook

[gl20]

Keep in mind some providers may not pass on the saving but pocket it instead. To be fair it’s understandable if they are close to bankruptcy. They’ll need to weigh that up v stimulating demand..

[Cabbie]

Originally Posted by gl20

Keep in mind some providers may not pass on the saving but pocket it instead

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Interesting article about it here on the BBC Website.

-Steve

[chids]

We've got a cottage booked in Wales next month. The balance is due to be paid next week on the 16th July, i've emailed to see if they're going to amend the balance in line with the 5% VAT change. I don't expect that they will say yes, but you never know. It'll save us about £80 so whilst not a massive amount of money, it will still be nice.