In this case before the Firt Tier Tribunal, the question is raised if the provision of “driving experiences” can be subject to the reduced VAT rate.
The Appellant describes its services as “driving lessons for under 17 year olds”, as “driving lessons”, and its own status a “driving school”. This is later softened, as to not perceiving the services as real driving lessons, but merely as ‘an attraction’ or event that should be taxed at the temporary reduced VAT rate. The services are compared to attending a circus, zoo, cinema, fair or amusement park.
The UK tax authorities do not agree with this view. Simply said they are of the opinion that there is no “right of admission to an event” and, even if they are, they are not rights of admission falling within Group 16. Customers are not buying a entrance ticket, that gives them access to a location and to freely wander around to view all the available attractions.
The FTT does not agree with the Applicant and dismisses the appeal. The services are subject to the standard VAT rate.
Source: bailii.org
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