VAT Treatment of Sightseeing Passes: The Go City Limited Case Explained

• The case of Go City Ltd involved the VAT treatment of sightseeing passes
• The passes were sold at a price lower than the usual admittance price at attractions
• HMRC initially accepted the passes as face value vouchers but later changed their view
• The difference in VAT treatment is between face value vouchers and single-purpose vouchers
• Go City Ltd argued that the passes were multi-purpose vouchers and output tax was only due when redeemed
• HMRC contended that the passes were tickets and output tax was due up-front
• The appeal was allowed and the passes were considered multi-purpose vouchers
• The passes were outside the scope of VAT because they were multi-purpose vouchers
• HMRC’s assessments were ruled invalid as they were raised before a final decision was made
• Recent changes have altered the UK rules for face value vouchers, which include vouchers sold by discount websites and high street retailers.

Source: marcusward.co

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.

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