Accommodation VAT Rate Rises to 21%; Culture, Media, and Sports Keep 9% Rate

The planned VAT increase from 9% to 21% for accommodation, culture, media, and sports has been partially reversed. From 1 January 2026, the 9% VAT rate will remain for culture, media, and sports, while accommodation will move to the 21% standard rate. This change protects cultural and sports sectors from higher costs, while the accommodation sector is expected to face increased prices.

However, in the 2025 Spring Memorandum, the government reversed part of this plan. The new legislation, amending the 2025 Tax Plan, keeps the 9% reduced VAT rate in place for culture, media, and sports.

Only accommodation services will move to the standard 21% VAT rate from 1 January 2026.
This adjustment limits the cultural and social impact of the VAT increase while still generating additional tax revenue from the accommodation sector. The hospitality industry is expected to face higher costs, potentially leading to increased pricing for consumers, whereas cultural and sports sectors will maintain current pricing conditions.