VAT. Reduction. Today

[martin2603]

So will the CMC and CCC and all other sites be passing to 15 % VAT Reduction on to the customers. ??

 

[Cheshirecat57]

Well if they don't ( ie still charge 20%), they have to give the 20% collected to the treasury
( who can put it back in the coffers)

 

[Wh05apk]

Really can't see the point of this, it will cost the country billions, and really if a site reduces from £24 to £21 will you be anymore likely to use it?

 

[rangi]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

 

[Wh05apk]

Well if they don't ( ie still charge 20%), they have to give the 20% collected to the treasury
( who can put it back in the coffers)

Site fees are charged inclusive of tax, not net + tax, so up to the sites if they pass on, I suspect most won't.

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[Cheshirecat57]

I give up

 

[Belgianbun]

Does the VAT only apply to campsites, or given that it applies to goods and services in the tourism and leisure sector, to motorhome sales too?

 

[Yorkshirelad175]

BBC News website reporting on the Chancellor today :-
“He told MPs he will cut VAT on food, accommodation and attractions from 20% to 5% from next Wednesday.”

So, my new motorhome will be my accommodation, used for majority of dining and main attraction when I tour the country.
Now, will the VAT be reduced on my new purchased motorhome ???

Dream on my Son.....

 

[chaser]

BBC News website reporting on the Chancellor today :-
“He told MPs he will cut VAT on food, accommodation and attractions from 20% to 5% from next Wednesday.”

So, my new motorhome will be my accommodation, used for majority of dining and main attraction when I tour the country.
Now, will the VAT be reduced on my new purchased motorhome ???

Dream on my Son.....

There's no vat on food anyway

 

[Stroppy Bird]

There's no vat on food anyway

Well that depends. Some is, some isn't. Sometimes depending on what it is (remember the Jaffa Cake saga), sometimes depending on how it's served (on premises or takeaway), and sometimes on whether it's hot or cold.

VAT rates on different goods and services

A list of goods and services showing which rates of VAT apply and which items are exempt or outside the scope of VAT.

www.gov.uk

Food and drink, animals, animal feed, plants and seeds
Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Restaurants must always charge VAT on everything eaten either on their premises or in communal areas designated for their customers to use, such as shared tables in a shopping centre or airport food courts.

In addition, restaurants and takeaway vendors must charge VAT on all hot takeaways and home deliveries, but do not need to charge VAT on cold takeaway food unless it’s to be eaten in a designated area.

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[pelican]

BBC News website reporting on the Chancellor today :-
“He told MPs he will cut VAT on food, accommodation and attractions from 20% to 5% from next Wednesday.”

So, my new motorhome will be my accommodation, used for majority of dining and main attraction when I tour the country.
Now, will the VAT be reduced on my new purchased motorhome ???

Dream on my Son.....

Not if you have paid for it

 

[MyrtleGuru]

Well that depends. Some is, some isn't. Sometimes depending on what it is (remember the Jaffa Cake saga), sometimes depending on how it's served (on premises or takeaway), and sometimes on whether it's hot or cold.

Yes, I remember the Greggs ambient pasty VAT debacle

 

[Yorkshirelad175]

Not if you have paid for it

Not yet, still waiting delivery from manufacturer to dealer.
But not holding my breath for a reduction of VAT !

 

[maison]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

At least the C&CC have extended membership for the same duration as the shutdown. That’s more than a lot of businesses have done.

They could simply have said “tough” as many static sites have said to owners of units on their sites.

So a little credit is due to them at least.

 

[sedge]

It is intended to boost the income of the hospitality industry. Not the income of their customers.
End of story.

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[Basildog]

It is intended to boost the income of the hospitality industry. Not the income of their customers.
End of story.

That’s not what the chancellor actually said !

 

[pelican]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

Simply because it is not theirs to keep.

 

[chaser]

I should keep out of this as I have no intention of giving a campsite anything but surely if they are charging any amount of vat it should be on the receipt so the right amount should be paid by the customer.

 

[SpeedyDux]

The CAMC has additional running costs to comply with Guidance, and lost income during lockdown, so if they don't pass on the VAT cut via reduced pitch fees to members, it is understandable as a business decision to balance the books for 2020. We shall see. Meanwhile from trying to book sites online it looks like they are close to full on popular sites so they don't need to reduce prices for those sites anyway.

 

[nelly]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

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[busby]

Really can't see the point of this, it will cost the country billions, and really if a site reduces from £24 to £21 will you be anymore likely to use it?

Quite a few on here i assure you,,.BUSBY.

 

[DC4JC]

Really can't see the point of this, it will cost the country billions, and really if a site reduces from £24 to £21 will you be anymore likely to use it?

Dont shoot the messenger, Out and about live have issued a piece related to this quoting ' will siginificantly reduce the cost of staying on a campsite or holiday park'.

We have a week booked in August, for the 2 of us, which if we were to get the VAT change back, would mean £40 in our pocket! I do not expect to get a reduction, as VAT becomes payable at raising of invoice and its already paid.
But for a family with 2 or 3 kids staying for a week or fortnight, particularly for those sites that charge per head, if it were passed on, for them it would be significant.

 

[Stephen Franklin]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

They have lost money by being closed, not saved it.

 

[kevenh]

That’s not what the chancellor actually said !

Correct if not muddled chancellor quote is: -

The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will save households around £160 per year on average and, together with the Eat Out to Help Out Scheme, will support over 2.4 million staff at over 150,000 businesses, helping them recover and reopen after the Covid-19 lockdown. This will give these businesses the confidence to maintain their staff, as more people get through the door and business activity kick-starts again.

Who benefits directly is crystal clear, right?
Source of quote

EDIT: A campsite & VAT discussion is Broken Link Removed

 

[busby]

They hav'n't shared the savings of shutting the facilitys, why should they refund the savings of the VAT cut?

It would be illegal id they did not reduce it,,BUSBY.

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[Gromett]

It would be illegal id they did not reduce it,,BUSBY.

No, It is only illegal to charge it at 20%...

Currently If I charge £12.00 for you to stay at my campsite, £2.00 of that goes into the VAT kitty.
With the reduction I can continue to charge £12.00 for you to stay at my campsite, but only £0.50 of it will go into the VAT kitty.

You as a consumer are not affected in any way. Me as the campsite owner will recover a little bit from being FORCED to shut down for 4 months and now have additional costs associated with covid measures.

If you don't like me charging £12.00 a night now and some of that money coming to my hard working staff, you can always wait until next season and still pay £12.00 with all of the £2.00 going to the government. Your call

The only people who care about the VAT exclusive prices are VAT registered companies. Normal consumers should be quoted an all in price at all times.

 

[busby]

No, It is only illegal to charge it at 20%...

Currently If I charge £12.00 for you to stay at my campsite, £2.00 of that goes into the VAT kitty.
With the reduction I can continue to charge £12.00 for you to stay at my campsite, but only £0.50 of it will go into the VAT kitty.

You as a consumer are not affected in any way. Me as the campsite owner will recover a little bit from being FORCED to shut down for 4 months and now have additional costs associated with covid measures.

If you don't like me charging £12.00 a night now and some of that money coming to my hard working staff, you can always wait until next season and still pay £12.00 with all of the £2.00 going to the government. Your call

The only people who care about the VAT exclusive prices are VAT registered companies. Normal consumers should be quoted an all in price at all times.

Think I will visit your camp site,,12 pound a night is cheap..BUSBY..

 

[Gromett]

Think I will visit your camp site,,12 pound a night is cheap..BUSBY..

Jim charges £12 a night for funsters with hookup. Get yerself booked in

 

[F.M.C.Fourier]

With the reduction I can continue to charge £12.00 for you to stay at my campsite, but only £0.50 of it will go into the VAT kitty.

57p to be precise; £12 x (5%/105%) = 57p

 

[F.M.C.Fourier]

I wanted to bring up this reduction in VAT again; in another thread on the topic, which I can't now seem to find, I stated that deposits made before the change would continue to attract the 20% rate. I said this because that is the normal rule. Deposits must have VAT applied to them at the rate applying when the deposit was paid (or invoiced if earlier) - because that is the tax point.

But, the government have now announced that, as far as this change is concerned, if a deposit was paid when the rate was 20%, but the actual stay is when the rate was 5%, then the business may, at its discretion, charge only 5% on the deposit as well as well on the balance of the cost. Thus it could be possible for the business to make refunds contrary to what I said in the first instance. But it is not mandatory that the business applies the 5% rate to the deposit.

I do not wish to be the source of what with hindsight has turned out to be false information so I thought it worth making that clear.

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