VAT reduction in England

Marc850
Level 2
Plymouth, United Kingdom

VAT reduction in England

Hi, does anyone know why Airbnb are still charging hosts 20% VAT when the Chancellor of the Exchequer announced a VAT reduction to 5% for the whole of the hospitality sector? 

1 Reply 1
Emiel1
Level 10
Leeuwarden, The Netherlands

@Marc850 

 

At Airbnb the VAT is only charged on the Airbnb servicecosts (BTW if platform is used from a business account other rules apply).

 

The question is:

Are these servicecosts related to "hospitality sector" , as described here:

Guidance on the temporary reduced rate

?

 

Kind regards,

Emiel