Now show, zero VAT

[TheCyclingProgrammer]

- was it a no show? If yes and the room was guaranteed (ie available and not able to be relet) the vat is due. Else not.

Interesting discussion, article here (bottom comment) suggests the case law that established the above has been superseded and a no-show is effectively a cancellation, which would make any fee charged or deposit retained, compensation, not consideration for a supply:

https://www.taxation.co.uk/Articles/...02/no-show-vat

[malvolio]

It was the latter a no show as a cancellation wouldn't make sense as I would not get my money back anyway, so why bother to cancel.

If you're worrying about 20% of a bill you did nothing to avoid I suggest you look again at your fee structure...

HTH

[Eirikur]

As usual it depends.....

- was it a cancellation? If yes then vat not due as it is a compensation payment as per malvolio description.

- was it a no show? If yes and the room was guaranteed (ie available and not able to be relet) the vat is due. Else not.

One would imagine that it would be the former. This is quite likely wrong since a lot of bookings have a "release at 1 am" type clause. Though some offer guarenteed late arrival on request.

I am sure thare will be numerous threads on accounting web etc.

There is also a vat notice.

https://www.gov.uk/government/public...otels-and-holi

It was the latter a no show as a cancellation wouldn't make sense as I would not get my money back anyway, so why bother to cancel.

[ASB]

As usual it depends.....

- was it a cancellation? If yes then vat not due as it is a compensation payment as per malvolio description.

- was it a no show? If yes and the room was guaranteed (ie available and not able to be relet) the vat is due. Else not.

One would imagine that it would be the former. This is quite likely wrong since a lot of bookings have a "release at 1 am" type clause. Though some offer guarenteed late arrival on request.

I am sure thare will be numerous threads on accounting web etc.

There is also a vat notice.

https://www.gov.uk/government/public...otels-and-holi

[malvolio]

Ermm...

VAT stands for Value Added Tax, essentially it's a tax on providing something over and above the cost of the thing you bought. You didn't show up so they did not provide a service so VAT cannot be applied. What you've been billed for is the opportunity cost of an unlet room, not the provision of a service.

[SueEllen]

If you think VAT is excluded then kick up a fuss with Head Office in writing and report them to HMRC for tax evasion.

I did so recently with a mobile phone retailer and they refunded me the VAT to pay to HMRC.

[Eirikur]

was this booked direct with the hotel or through someone like expedia/hotels.com?

If you book a hotel through a website that isn't a UK company, e.g. hotels.com, and you pay in advance (usually no cancellation), you can't claim the VAT back as you haven't been charged any by the foreign company and they aren't VAT registered.

If you book through them but pay at the hotel, you can as the UK based hotel will be charging you vat.

It was booked direct with the hotel, VAT number was in the confirmation

blacjac
I'm guessing its Premier Inn cause I've had this too.

No it was Accor Hotels - Novotel

I asked for an explanation a few days ago, as I stay there regularly and the manager said something vaguely about covering the cost for the hotel.

[blacjac]

I'm guessing its Premier Inn cause I've had this too.


If you read carefully the invoice will show a 'no show fee' or similar.
This is fee they are charging is technically not a hotel booking fee and does not attract VAT.

[FrontEnder]

was this booked direct with the hotel or through someone like expedia/hotels.com?

If you book a hotel through a website that isn't a UK company, e.g. hotels.com, and you pay in advance (usually no cancellation), you can't claim the VAT back as you haven't been charged any by the foreign company and they aren't VAT registered.

If you book through them but pay at the hotel, you can as the UK based hotel will be charging you vat.

[TheCyclingProgrammer]

It's possible that showing VAT at 20% in the confirmation email was an error.

I think for any claim to be refunded the 20% you'd have to show that the price was advertised as including VAT at 20% in the pre-sale information - either on the hotel page or on the shopping basket or in the terms somewhere. Otherwise they could just say the price was £x including VAT at 0% and the confirmation email was just a mistake.

The fact you've been sent an invoice showing a zero rate would seem to suggest the email was wrong.

[BrilloPad]

They should refund your 20%.

[Eirikur]

I'm on normal VAT rate, left flat rate in April when the changes came in

[SueEllen]

Are you flat rate or not?

[Eirikur]

Booked a hotel few weeks ago which had a price which included 20% vat according to the confirmation email.
As it was the lowest possible price I couldn't get a refund when not using the reservation, I accept that fully, that's the risk I take by booking at the lowest rate.
So when I asked for an invoice for the time I didn't show up they gave me a no show, zero vat invoice for the same total amount as the original booking. Leaving it impossible for me to claim back VAT.

Is the hotel right doing this or should they have refunded me the VAT element?
Or can I claim back VAT on it anyway?