For a number of years, HM Revenue & Customs
(HMRC) have argued that
booking fees charged when purchasing tickets for
events are subject to
VAT.
A case has now gone through the Courts that has confirmed such
booking fees are exempt from VAT. Where such fees have previously
been
charged, a claim may exist for overpaid VAT. If a historic claim does
not exist, going forward, such booking fees could
be restructured to
ensure that they fall within this VAT
exemption.
By way of background, the case in question was that
of Bookit Ltd.
Bookit is Odeon Cinemas ticket booking subsidiary. When you book
cinema tickets, Bookit charges a fee for use of
your credit/debit card
in booking those tickets. The Courts have universally agreed
that this
fee is exempt from VAT as "credit card handling".
This has led to a
substantial repayment for Bookit, and other
companies in a position
where they charge customers a fee for use of a
credit/debit card when
booking or buying goods/services.
Should you wish to obtain further details about
this ruling, and to see
whether it would apply to you, please telephone
Hannah Dobson at
PricewaterhouseCoopers, London on 020 7213 8719, or
Paul Lenarduzzi at
PricewaterhouseCoopers, London on 020 7213
1006.
Hannah Dobson
Director
Tax & Legal Services
Direct Line: +44 207 213 8719
Direct Fax: + 44 207 213 3443
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