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Where Taxpayers and Advisers Meet

Arranging Accommodation

413kph
Posts:1
Joined:Mon Feb 10, 2020 2:14 pm
Arranging Accommodation

Postby 413kph » Mon Feb 10, 2020 2:24 pm

I have a client who brings students from French catering colleges to the UK under the Erasmus+ scheme for vocational training with hotels and restaurants. He is funded by the colleges who obtain a grant from Erasmus for the purpose. He has recently started arranging accommodation for the students with Homestay type companies and recharging them. Question is : should he charge them VAT? VAT notice 701/30 seems to say yes at para 13.3, on the basis that the funds come from the student rather than Erasmus, but he thinks No. Does anyone have experience of this?

Nick Darton-Bigg

Trevor S
Posts:108
Joined:Tue Jan 01, 2019 12:37 am

Re: Arranging Accommodation

Postby Trevor S » Tue Feb 11, 2020 5:30 pm

Another angle to consider - are the French colleges considered to be in business? If they are, your client would be making a B2B supply of services. Just arranging accomodation (rather than actually supplying it) doesn't count as a service directly related to land - see section 7 of notice 741A. Therefore the place of supply for a B2B supply would be France, rather than the UK - so the French colleges would be required to account for any VAT due on the services under the reverse charge.

Trevor S
Posts:108
Joined:Tue Jan 01, 2019 12:37 am

Re: Arranging Accommodation

Postby Trevor S » Tue Feb 11, 2020 5:36 pm

Of course, my previous post only applies if your client's supplies are made to the colleges. If the contractual relationship is with the students direct, the supply would be B2C, and the place of supply would be the UK.


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