- Temporary reduced VAT rate for hospitality services was implemented in the UK from July 2020 to March 2022.
- Legislation excluded alcoholic beverages subject to excise duty from the reduced rate.
- JD Wetherspoon PLC sought VAT repayment on cider, claiming it should have been at the reduced rate.
- HMRC denied the claim, stating cider is an alcoholic beverage subject to excise duty.
- JDW appealed to the FTT, which examined the statutory language.
- FTT concluded cider is included in the term “alcoholic beverages” despite being mistakenly left out.
- FTT applied the Inco principle to correct the legislative error, including cider in the exclusion.
- Decision confirms cider is excluded from the reduced VAT rate for hospitality services.
- Businesses should review VAT practices to ensure compliance with this interpretation.
- Case shows FTT’s willingness to interpret legislation to reflect Parliament’s intent.
Source: rpclegal.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.
