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Should this really be 5% VAT

Ice rink charging 5% on ice rink rental time, is this correct?

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My client company hires ice rink time and charges it on to coaches for training skaters.  They used to be charged standard rate by the owner of the rink but it has recently changed to 5%.  I can't see anything in the guidance that ice rinks are covered in the temporary reduction in VAT rate, but they are a big company so it makes me doubt myself.

Does anyone see what I've missed?

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chips_at_mattersey
By Les Howard
21st Sep 2020 08:34

Does the owner think the supplies fall into the temporary reduced rate for attractions?
The new Group 16 states: "Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities."
Like you, I am not convinced!

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Replying to leshoward:
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By mrshamilton
21st Sep 2020 11:12

I can't see any other reason that they would think that and it seems clear that ice rinks are not part of that.

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Ivor Windybottom
By Ivor Windybottom
23rd Sep 2020 11:07

There is also the concern that it is not the supply of a right of admission to a cultural event/facility, but is the hire of the entire premises to the coach, i.e. building hire, rather than admission charge.

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Psycho
By Wilson Philips
21st Sep 2020 08:42

What you’ve ‘missed’ is that it isn’t your or your client’s problem.

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Replying to Wilson Philips:
RLI
By lionofludesch
21st Sep 2020 09:04

Nevertheless, he has a similar one if he's charging it out. Though I think he'd be stuck with 20% choose what.

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Replying to lionofludesch:
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By mrshamilton
21st Sep 2020 10:07

exactly that! They are then charging it out.

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By thestudyman
22nd Sep 2020 22:22

Whichever way you look at it, the ice rink is skating on thin ice with the vat treatment.

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Replying to thestudyman:
Ivor Windybottom
By Ivor Windybottom
23rd Sep 2020 11:08

You really don't want to slip up on this one!

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