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Readers' forum : Shipping charge

26 April 2016
Issue: 4547 / Categories: Forum & Feedback

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...

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