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Readers' Forum: VAT rebate on letting

16 August 2021
Issue: 4805 / Categories: Forum & Feedback
VAT on long-term accommodation.

One of my clients is VAT registered and she owns a holiday apartment which she rents out on Airbnb.

For one letting a customer stayed for 84-nights (without a break) because he was working in the area. My client has charged 5% VAT on the whole booking but the guest is asking for a VAT rebate under the 28-day regular lettings rule.

Could readers explain how this works? If some of the fee is exempt from VAT will my client need to do a partial exemption adjustment?

The other complication was that the booking was in the name of the customer’s limited company although he was the only guest staying there. Does this make a difference?

Query 19 798 – Vacation Val.

No part of the supply is or becomes exempt as a result of this rule

The answer to all...

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