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Is an "open space" pitch at an event vat-able?

Our company runs open air events. Our traders at the event buy a site space from us, and then set up a marquee to trade from.

Several of them have said recently that we don't have to charge vat on the pitch because all we are doing is providing a space, and not a service. Apparently some events do this, and then only charge vat on marquees hired from the event company or electricity etc.

I'm quite interested in this as, with the vat rise, our site fees are going to go up next year whether we put the cost of our pitches up or not, and this is not good news for some of our smaller un vat registered traders.

I tried to phone the vat helpline about it, but I'm getting the "high level of calls, call back later" message, so I thought I would ask on here.

Does anyone know?
Saving up £25000/£3500 by Jan 1st 2012 by selling my clutter. Remember I'm doing it for Dad.
Textiles, languages, travel and a lovely home are not stupid things to want. You have immediate family's support.Appreciate what I've achieved so far. Other people's opinion of me is none of my business.
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