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3090913 - Implementation of VAT Change for Hospitality Sector in the UK


A temporary VAT reduction for the hospitality sector has been introduced for the United Kingdom.

This is described in the What's New in SAP Business ByDesign - section.

  1. What's New in Financial Management
  2. Country/Region-Specific Changes
  3. United Kingdom
  4. Reduced Tax Rate

For United Kingdom, a reduced rate of VAT at 12.5% has now been introduced for the hospitality sector, hotel accommodation, and admissions to certain attractions. This new rate will be applicable from 1 October 2021 and will be valid until 31 March 2022.

Shipped changes contain the delivery of a new Tax Rate Type 4 (Rate: 12.5 %).

Respective custom tax codes will have to be set up in the system in order to to facilitate the application of reduced rates and reporting to tax authorities.



SAP Business ByDesign


SAP Business ByDesign 2108


VAT Great Britain Temporary VAT Change Hospitaltiy , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , Problem

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