Dont think they will add it to your holiday now, as you have a contract with them.

Kath x

VAT - where applicable - is added at the invoice point/time. Basically you have paid part of the bill when you handed over your deposit so there will (should) be no change.
Should be noted that if VAT was reduced after invoicing you would still pay the rate applicable when invoiced.

fwh

If I remember rightly, holiday companies dont pay the normal UK VAT charges..

VAT is not payable on flights or foreign hotel rooms - so 2.5% increase does very little.

VAT where applicable is charged at the point of invoicing.
If the rate goes up or down or even an item becomes zero rated after that date then it does not effect what you have been charged. As an example if you have ordered a new car before January 1st but have not yet paid for or taken delivery,and have been invoiced in December, then you will only pay the 15% rate.
It should be noted that this only applies to VAT due in the UK. If, for example, you have booked a hire car or some other service in another country with your holiday, even if this is done via a company in the UK, then the rate you pay will be that applicable in the country where you have booked it.

fwh

The other thing to remember is that the date of return to the normal rate of VAT was announced at the time it was temporarily cut last year. So any affected prices quoted specifically for this year should have been on the basis of 17.5% because it was known about before the prices were quoted. As previoulsy stated foreign package tours shouldn't be affected anyway but if you, for instance, phoned a UK hotel last month, booked a hotel for next week and they gave a price inc. VAT then that's it - no increase when you come to pay.