- Reduced value rule allows hotels to charge VAT on only part of amounts invoiced to long-term guests
- Isle of Man High Court ruled that reduced value rule applies to serviced accommodation at The Quarters in London
- BLS1 Ltd arranged for cleaning, changing of towels and linen, and provided basic amenities in studio apartments
- High Court determined that The Quarters was similar to a hotel, allowing for application of reduced value rule
- Tribunal’s focus should have been on whether The Quarters was a similar establishment to a hotel, not on other factors
- BLS1’s appeal was allowed as it correctly applied the reduced value rule to services provided to long-term occupants.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- Isle of Wight NHS Trust Wins Appeal: Locum Doctor Supplies Exempt from VAT
- Call to Remove VAT on Sunscreen Amid Rising Skin Cancer Rates in Wales
- HMRC Releases New Guidelines on Freeports Compliance and Tax Benefits
- High Court Rules in Favor of Hotelbeds: Alternative Evidence Valid for VAT Deduction
- UK Supreme Court Rules Uber Must Pay VAT on Private Hire Services, Impacting Industry
