USE OF EXEMPTIONS FOR HOTEL ACCOMMODATION

摘要

My client runs a hotel and is VAT registered. He has the usual short-stay guests, but he also lets rooms to individuals for longer stays, in some cases exceeding 28 days. Where stays exceed 28 days, and the occupant is an individual, he only accounts for VAT on the reduced value, being the element of his service charge in accordance with section 3 of VAT Notice 709/3: hotels and holiday accommodation. He is considering moving onto the flat rate scheme for VAT but I am concerned that he will have to account for the flat rate on all of his turnover. Is this correct?