Cases - Afro-Caribbean Housing Association v Commissioners for Revenue and Customs

Record details

Name

Afro-Caribbean Housing Association v Commissioners for Revenue and Customs

Date

[2006]

Citation

VAT decision 19450

Legislation

Value Added Tax Act 1994

Keywords

Value added tax - supply of services - provision of hotel accommodation for more than 28 days - leasing of immovable property - reduced rates of tax - whether reduced value rule under paragraph 9 schedule 6 of Value Added Tax Act 1994 applies - reduction in tax rate on services element of price after 28 days

Summary

This tribunal confirmed that where an individual stayed in a hotel or similar accommodation for more than 28 days the reduced value rule for VAT purposes still applies where the payment for the accommodation is made by a third party other than the actual individual staying in the accommodation.

The reduced value rule under para 9 of Schedule 6 of the VAT Act 1994 provides that hotel or similar accommodation is not liable to full VAT at the standard rate if an individual stays in the accommodation for more than 28 days. The first 28 days are liable to VAT at the full rate, thereafter the VAT is only due on the services element of the price.