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VAT rate increase and contactless limit change

September 30, 2021
Industry News

The first phase of the reduced rate of VAT for hospitality, hotel and holiday accommodation and admission to certain attractions is due to end today (30th September).

A manger sorting through receipts

There are a few changes being implemented in the industry that you should be aware of.

Increased VAT Rate

The first phase of the reduced rate of VAT for hospitality, hotel and holiday accommodation and admission to certain attractions is due to end today (30th September). From 1st October 2021, the new VAT rate of 12.5% will be introduced and will remain in effect until 31st March 2022. Visit the Gov website for more information.

Contactless Limit Change

The contactless limit is changing, from 15th October the contactless limit will be increased to £100 from £45, for sterling only. Given the number of terminals that will need to be updated to accept the new limit, it may take some time for the new level to be introduced across all terminals. For more information, please contact your EFT provider.

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