I have a client who operates as a residential outdoor adventure activity centre with clients who range from school groups to day adventure seekers. Accommodation, meals, instructors and equipment are all in the package. In relation to the Reduced Rate Vat Update issued 9 July 2020, I see that at Pare 2.1 there is a definition of 'Similar Establishments' but I'm left uncertain about status of my client. Client has called Customs and been told that they are covered by Reduced Rate Vat but conversation closed with Customs Officer pointing out that Vat Payer has to interpret Customs Guidance (I know they always do this!). I am concerned about the uncertainty for my client. Any thoughts out there?
Replies (5)
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Hospitality - check
Holiday accommodation - check
Attractions - check
Your client's business seems to me to tick all the boxes for the temporary reduced rate.
We have found that some activity centres are exempt, under the welfare provisions.
You will need to look at the non-profit status (as that is a condition for exemption).
I would wait for the legislation to be published and perhaps engage a specialist to provide a thorough review.
Hello,
Did you manage to reach a conclusion with this?
I have a very similar client and am happy that the bunkhouse accommodation should be 5% however am struggling with how the activities should be treated.
There is no 'admission' charge and I cannot see how else it qualifies.
Thanks in advance
M