On the 8th July 2020, the UK Chancellor, Rishi Sunak, announced that there would be a temporary reduced rate of VAT for hospitality, holiday accommodation and attractions. ‘Concerts’ have been listed within attractions and therefore our (VAT registered) promoters should benefit from this. Further guidance can be found here https://www.gov.uk/guidance/vat-on-admission-charges-to-attractions

The temporary reduction is effective from Wednesday 15th July 2020 and will last until 30th September 2021; then 12.5% til 31st March 2021. From 1st April 2022 the VAT rate will be 20%.

Skiddle will also benefit from this reduction in VAT on some of its services. However, we are going to keep our booking fees and charges the same as before. Customers will pay the same prices as before.

In regards to your tickets, it is entirely up to you what to do with your prices. Remember that this will only benefit you if you are VAT registered as an individual or business. We advise in most cases that you keep the ticket prices similar to before, the benefit from this is that you will receive more net income than before.

Skiddle feels the real aim of this temporary reduction in VAT is to get the music industry moving again. The more ticket sales you can make in this period then the more you will benefit from the reduced VAT rate, that’s why we suggest getting tickets on sale early.

Skiddle’s remittance breakdown shows the date of each transaction at the point of sale. This information can be used to easily split sales between pre 15th July and post 15th July. This will give you (and your accountants) easy reference to the timing of the sale and the relevant tax point.

Disclaimer - This information should not be taken as legal advice, please consult professional advice for further information.

For more information please see the UK Government website HERE.

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