Hospitality Industry and Tourism: VAT
2026-05-18 · Treasury · HL260 · Official question
Question
To ask His Majesty's Government what recent assessment has been made of the impact of the 20 per cent VAT rate on the competitiveness of the UK tourism and hospitality sectors.
Answer
The UK’s standard VAT rate of 20 per cent is close to the OECD average of 19.3 per cent and is forecast to raise almost £190 billion in 2026/27.VAT is a broad-based tax on consumption, and the standard rate applies to most goods and services. VAT on servi...