How will the VAT rules affect your event for 2022?
On 8 July 2020, the government announced that it would introduce a temporary reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions. The 5% VAT rate has since been extended to September 2021, increasing to 12.5% from 1 October 2021 to 31 March 2022, before rising back to 20%.
The temporary VAT rules give you the option to approach ticketing in one of two ways for your 2021 event: You can pass the saving to customers, or use it to improve both the quality and safety of your event.
What about next summer?
Some customers aren’t even able to purchase tickets for 2021 events and it could be a while before they’re in a position to order for next Summer, too – so how do you encourage them to do so earlier than that may have intended?
The answer: payment plans
Similarly, payment plans require customers to pay booking/transaction fees and, funnily enough, VAT when paying their deposit. So, if your customer purchases their ticket before March 2022, they (or you) benefit from the reduced VAT rate.