- The government introduced a temporary 5% VAT rate in July 2020 for certain sectors during the pandemic.
- The First-tier Tribunal ruled that Ingliston Driving Experiences Ltd (IDE) correctly applied the 5% VAT rate to its supercar driving experiences.
- IDE offers driving experiences where customers drive or are driven in supercars at off-road circuits.
- Customers purchase vouchers, redeem them online, and receive tickets for their experience with professional instructors for safety.
- HMRC argued IDE provided more than admission, but the tribunal found IDE supplied a right of admission similar to amusement parks.
- The tribunal determined IDE’s facility was similar to cultural events or facilities like amusement parks.
- The tribunal allowed IDE’s appeal, confirming the 5% rate was correctly applied.
- The decision clarifies that experience-based attractions can qualify for reduced VAT rates if they provide entertainment similar to traditional amusement facilities.
Source: deeksvat.co.uk
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.
