Search
The Caterer

PKF adds voice to call for reduction in hotel and tourism VAT

23 November 2009 by
PKF adds voice to call for reduction in hotel and tourism VAT

Accountant and business adviser PKF has become the latest industry voice to call on the Government to reduce VAT for the UK's hospitality and tourism trade next year.

Richard Wild, PKF's director of VAT, warned that when the rate reverts to 17.5% in January it could mean that UK hotels will be paying three times more VAT than in many other European countries.

He called for the re-tabling of an Early Day Motion (EDM) urging the Government to consider reducing the VAT rate on accommodation and attractions in the UK.

Wild said: "We have one of the highest VAT rates in Europe in respect of tourism yet, whilst other countries are considering and implementing reductions in the rate of VAT in this area, the UK's VAT rate is set to increase."

The UK already has a lower rate of VAT, at 5%, to reduce the tax burden in specific areas and that could be extended to include tourism, giving the industry a much-needed boost, he added.

In Germany, from the beginning of 2010, the VAT rate for hotels will drop from 19% to 7%, while France has long enjoyed a reduced rate of VAT on visitor attractions of 5.5%.

Calls to reduce tourism VAT to 5% gets lukewarm response from industry >>

Travelodge backs campaign to cut tourism VAT to 5% >>
VAT cut for UK restaurants will not happen, say experts >>

Pubs and restaurants can use 15% VAT rate until 6am New Year's Day >>
By Emily Manson

E-mail your comments to Emily Manson here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next hotel job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!