VAT Reduction for Serviced Accommodation at The Quarters in Swiss Cottage, London: IOM HC Ruling

• 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.

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