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Skates for children were zero-rated for VAT.
istock_iceskates_StockPlanets
Skates for children were zero-rated for VAT.

VAT: Skating on thin ice

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Skates hired for children were a separate supply to the admission fees to the rink and therefore zero-rated for VAT.

9th Oct 2020
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Three-year saga

At long last, we may have seen the final chapter of the long-running saga of VAT tribunal cases involving The Ice Rink Company Ltd/Planet Ice (Milton Keynes) Ltd.

The facts of the case are very straight-forward. When a child goes ice skating at a rink and pays an extra fee to hire a pair of skates, in addition to the admission fee, does this involve two separate supplies? The taxpayer claimed this was two supplies, with the hire of skates for children being zero-rated (VATA 1994, Sch 8, Group 16, Item 1). The admission charge is standard rated. 

Taxpayer win in 2017

The initial decision made by the FTT (TC06117) went in favour of the taxpayer. The tribunal rejected HMRC’s argument that children were receiving a single standard rated supply of “skates with admission.”

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By Mikesch
15th Oct 2020 12:17

Another shocking waste of tax payers' money. Enough said!

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