VAT on Chalet Holiday Sales

VAT on Chalet Holiday Sales

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We have been in business three years and sell chalet holidays to France. We are a UK Ltd company and all business transactions take place in the UK. This winter has been very succesful and sales have now gone over the threshold for VAT registration. I have read a lot about place of supply etc and it seems that as the chalets are in France there is no UK VAT liability. Is this correct? If so do we still need to regsiter? Are our sales classed as 'exempt' or 'zero-rated' or something entirely different?

Sorry if this seems basic to everyone else but it is a steep learning curve when you try to do everything on your own!

Other than tearing my hair out, what is my next step?!

Thanks for your time
Anon

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By User deleted
03rd Apr 2008 17:10

It still depends!
You need to at least read VAT notice705/5/04 because although you may not think of yourself as such, you are classified as a Tour Operator for VAT purposes simply because you supply holiday accomodation.

You need to decide with the aid of the notice, as a matter of fact, whether your supplies qualify as "margin" supplies or not.

If they do, you register in the UK under the margin scheme; if they don't you may have to register and account for VAT in France (don't ask!)

I still think you need a face to face with an EC conscious VAT specialist.

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By User deleted
03rd Apr 2008 00:34

Clarification
Should have made it clearer, we are not an agent and simply sell holidays to properties in France that we lease and run on a catered basis. We lease 2 chalets and then spend the winter season running them.

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By User deleted
02nd Apr 2008 20:56

As ever - it all depends!
I'm not a long way ahead of you on the curve but it seems to me that:-

If by "sell chalet holidays to France" you mean that you are acting as an agent - then you need to read up about the Tour Operators Margin Scheme, and register in UK and pay UK VAT.

If you mean that you own the chalets in France and are selling holidays in your own chalets to UK folk, then you need to research French registration limits and how VAT works in France.

Or to put it another way, you need to locate a VAT specialist who, by telling you NOW what you need/ought to do, may well save you from going bust when either the UK or French authorities decide three years down the line what you should have done!

I'm a great believer in self help, but I always like to follow someone else through a minefield.

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