Join CEO James Foice interviewing Laura Chipp of VATNAV Ltd to understand the impact of recent VAT changes and what it means to the Serviced Apartment industry in the UK.
The session includes
* What the VAT changes will apply to in relation to tourist accommodation, food & hire spaces (i.e. accommodation which is usually subject to the standard rate of VAT because it is non-residential in nature) plus catered food and non-alcoholic drinks and admission to attractions. It won’t apply to the hire of rooms for other purposes – e.g. meeting rooms, banquet halls, etc.
* Services sold within TOMS, unfortunately, do not qualify at the moment, If your services fall within TOMS compulsorily (i.e. they qualify under TOMS, and you are providing the services to the person or business who is using the accommodation) then you can’t “opt out” of TOMS for this period.
* The effect the reduced VAT rate will have to the long stay rate. For most operators, the long-stay rate will be 1% (i.e. 5% of 20% rather than 20% of 20%) for the period.
* Changes to the Flat Rate percentages
* Understanding the “tax point” to ensure rate reduction is applied effectively. (i.e. when are services “supplied” within the 6 month reduced rate period)
* Whether or not the supplier or customer benefits from the cut & the relating legal and contractual terms. Where contractually the supplier is permitted to keep the benefit, it may also then be a commercial decision.
Click the image below to watch the session