.png)
.png)
Can organised events reduce their VAT by ignoring a ‘shipping’ cost on tickets?
I recently attended a national sporting event in Manchester for three days and the ticket price was £30 a day plus a ‘shipping’ charge of £5.50 a day for each ticket. The VAT charged on the total price of £106.50 was £15 so no VAT has been charged on the ‘shipping’ cost of £16.50. Is this correct?
As a twist in the tale the tickets were not ‘shipped’ in the post – I presented a copy of the email confirmation to the administrator on arrival each day. A coloured wrist band allowed entry to the arena.
If this is a legitimate VAT saver there is a lot of scope for other events to reduce their VAT liability. What do readers think?
Query 18 766– Squashed
Reply by Joe 90
In this case there is a composite supply comprising the principal supply of the...
