VAT tax point of Hotel F&B Sales

VAT tax point of Hotel F&B Sales

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When does the tax point of a Hotel F&B sale arise for resident guests , is it on the time\day the sale is made in the bar \ restaurant , or when the client checks out and pays the bill (maybe a week later) with the amounts charged to the clients room ?

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By eastangliantaxadvisor
16th Aug 2012 19:16

You need to go back to first principles:-

 

The basic tax point is the date the goods or services are supplied or ‘made available’ to the customer.

 

This is overridden by the actual tax point, or time of supply, which is the earliest of the following dates:

the issue of a tax invoice, if within 14 days of the basic tax point (to the extent of the sum invoiced); ora payment is received (tax value is the sum received, which is treated as including VAT).

So I would argue that it would be at the time the person buys from the bar, unless an invoice is rasied within 14 days?

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By shaun king
20th Aug 2012 15:06

Assuming the customer receives a tax invoice the tax point will be the date of the invoice as it will be within 14 days of the basic tax point.

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