Hotel client has an OTT. Does this mean that they are excluded from the possibility of applying the vat exemption to the room hire?
"When an ‘option to tax’ has been made by the person hiring out the room VAT will be chargeable (in the vast majority of cases). However, historically, the widely accepted position has been that renting an essentially empty room for a defined period is the grant of a license to occupy land, and is therefore VAT exempt. VAT law explicitly removes this exemption when the hire is ‘for the purpose of a supply of catering’."
I can't decide whether this says that they can or can't.
In my client's case, we're talking about historic income. I presume that it would be on my client to prove which income was for (materially) dry hire and which was for something more?