VAT AND TOURISM
The UK’s VAT rate (20%) is one of the highest in the world, and we are among only 3 out of 28 European Union destinations, that doesn’t apply a reduced rate of VAT to tourism businesses.
Reducing levels of VAT for all accommodation services would make the UK more competitive than its European counterparts, helping to improve the UK’s image as an affordable destination. Reducing VAT, in the long term, would also stimulate investment, employment and growth, enhancing the UK’s economy even further. Research using the Treasury’s own model shows that reducing VAT to 5% would boost GDP to £4bn per annum, create 120,000 jobs within 3 years and deliver £3.9 billion to the Treasury over 10 years.
UKinbound is a member of the Cut Tourism VAT campaign and The Tourism Alliance and works in collaboration with a range of industry colleagues to improve the UK’s competitiveness and perception as a value for money destination.
