Commentary

V4.113E Supplies in relation to land excluded from exemption—accommodation in hotels, inns, etc

Part V4 Exemption, zero-rating and reduced rates

V4.113E Supplies in relation to land excluded from exemption—accommodation in hotels, inns, etc

V4.113E Supplies in relation to land excluded from exemption—accommodation in hotels, inns, etc

Hotels, inns, etc

The provision of accommodation in a hotel, inn, boarding house or similar establishment is excluded from exemption if it comprises:

  1.  

    •     sleeping accommodation (eg in a bedroom)

  2.  

    •     accommodation in rooms provided in conjunction therewith (eg a bathroom or sitting room in a suite), or

  3.  

    •     accommodation for the purpose of a supply of catering (eg a room let for a wedding reception)1 (but see also 'Hotel conference/function facilities' below).

  4.  

    It is sufficient that a hotelier has provided accommodation and that accommodation is for the purposes of a supply of catering by the hotelier or anyone else2. A fee for the exclusive occupation of hotel facilities for wedding receptions was held to be excluded from exemption in Blendhome Ltd (t/a Stanhill Court Hotel) v C & E Comrs (1999) VAT Decision 16048 unreported (Part V12). See also Leez Priory v C & E Comrs (2003) VAT Decision 18185 and Best Images Limited v HMRC [2010] UKFTT 175 (TC). Prior to the publication of Notice 709/3 (October 2011 – now July 2020), HMRC had apparently taken the view that where the catering was supplied by a third party, the related accommodation was exempt. In that Notice, however, it states (para 4.1) that accommodation in a room within a hotel, inn, boarding house or similar establishment for the purpose of catering will be standard-rated (reduced rated from 15 July 2020 to 12 January 2021 –

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