Business Background
We are a holiday let business. We rent out properties from 2 days to 10 days. We advertise the properties on three sites mainly - Holiday Lettings, AirBnB and HomeAway. Bookings are made anything from 15 days to 400 days prior to arrival and our cancellation terms are normally 30 days. The invoice is generated at time of booking and there is no new invoice generated after. The payments by the guests are made in various different ways:
- (1) Home Away - Guests pay for the accomodation 25% on booking and the remainder 75% 30 days prior to arriving. The funds are transferred to us at time of payment
- (2) AirBnB - Guests pay up front to AirBnb, but the funds are transferred to us the day after the guest arrives
- (3)Holiday Lettings - Guests pay up front to AirBnb, but the funds are transferred to us the day after the guest arrives
Question
It is unclear to us what is our VAT liability for all bookings that were made prior to the 1st July where the arrival date is post 1st July.
Based on this link www.gov.uk/vat-record-keeping/time-of-s ... -tax-point it states:
Situation: Payment or invoice issued in advance of supply
Tax Point: Date of payment or invoice (whichever is earlier)
Based on this, does this mean that all bookings that were made prior to the 1st July - not VAT is due? This is because the invoices are generated at time of booking.
This is significant for us due to the amount - therefore any guidance would be much appreciated.
Thanks
A.
