Have been looking into above re a current client.
https://www.gov.uk/hmrc-internal-manuals/vat-finance-manual/vatfin2630 has the following
"Rental charges
Where the ownership and operation of an ATM is retained by the ATM provider, the site owner may be paid a fee by the ATM provider as consideration for the provision of a site for the ATM within his premises. If the ATM is installed in such a way that it may be re-sited, the fee charged by the site owner is in respect of a standard rated supply of an exclusive right to the ATM provider to supply a facility to obtain money."
Based on that, and the fact the machines are bolted to the floor, my view is that this does not apply, accordingly I assume the agreement is a supply of land by my client to the ATM owner, and in absence of an option to tax, such a supply is exempt.
My client is vat registered but does not opt to tax properties, in fact only one of the shops in question has vat charged on the rent to my client, accordingly I think the supply by my client is an exempt supply of land, but would be interested if anyone differs in view or has experience re these sorts of arrangements.
I do , of course, need to consider partial exemption if it is an exempt supply but expect the supply is deminimis.
Input appreciated
Replies (12)
Please login or register to join the discussion.
Bolted to the floor in itself would not mean it can not be re sited
I would expect the ATM to be securely bolted.
The ATM owner sholud be able to address the VAT status of the supply. Which you can confirm to your own satisfaction.
"the partner expressly agrees to self-invoicing"
Do they mean self-billing? If so it's the providers problem isn't it?
Is there not a distinction between a 'hole in the wall' cash machine which is built into the wall and one which is essentially freestanding but bolted to the floor for obvious security purposes?
If the machine is 'only' bolted to the floor, it would not be impossible to re-site the machine within the premises if necessary. Does your client's agreement contain any provisions re moving the machine within the premises?
Here's one being "re-sited" in Fintona, Co Tyrone.
https://www.belfasttelegraph.co.uk/news/northern-ireland/digger-used-to-...
In addition to the VAT issue, which sounds from the above that is it exempt if on the outside wall and taxable if sitting in the shop, has your client considered the possible Business Rates charges on both types (inside and outside) if the VOA are successful at the Supreme Court ?
https://www.colliers.com/en-gb/uk/insights/property-news/2018/1206-colli...
I do recognise that there is an argument that with bank closures an ATM is perceived as a public good by consumers and should be shielded from all public charges - surprised that this has not be championed more strongly in the public arena
Here's a "hole in the wall".
https://www.belfasttelegraph.co.uk/news/northern-ireland/digger-used-to-...