- Supply of accommodation in hotels subject to VAT at standard rate
- Reduced value rule applies after 28 consecutive nights
- Rule does not apply to holiday accommodation
- BLS1 Ltd provided serviced accommodation in London
- Isle of Man tax authority disagreed on VAT treatment
- Tribunal initially ruled against BLS1, but High Court allowed appeal
- Reduced value rule applies to BLS1’s supplies
- Effective VAT rate for long stays after 29th day is 4%
- Businesses encouraged to review VAT treatment for potential benefits
Source: saffery.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 vs HMRC: VAT Exemption Dispute on Locum Medical Practitioners
- HMRC Guidance: How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)
- Supreme Court Decision Mandates Prudential to Pay VAT on £9.3 Million Success Fees
- UK Supreme Court Rules on VAT Grouping and Time of Supply in Prudential Case
- High Court Rules in Favor of Hotelbeds UK on Input Tax Recovery Without VAT Invoices
