VAT reduction for hospitality

MikeASmith

I paid site fees in December 2019 for a non residential static caravan in advance which included the period covered by the reduction in VAT from 15 July 2020 to 12 January 2021. The site owners have told me that 1. they don't know if they can claim back the VAT being the difference between 20% that I have paid to them and the reduced rate of 5% and 2. even if they could they are not prepared to pass on the reduction to me. 
Does anyone know if they are able to claim the VAT back and if so are they obligated to pass this reduction on to me?

[Deleted User]

They're not obligated to pass anything back to you, which is the only thing that matters.

Jeremy535897

The tax point is when you paid, so 20%.

warby68

You get that the VAT reduction is to help businesses first don't you?
How do you think it will help the business if its all passed to you the consumer? Sales are fairly fixed on a static site.
I suspect whether they can claim will depend how it was accounted for in the books and previous VAT returns - one for an accountant.
But no, no obligation but they might. 

MmmRasps

I thought the VAT reduction was to help businesses by making the reduced cost more attractive to buyers, many of whom have very little disposable income or are too scared of the future to spend much! 

bradders1983

MmmRasps said:

I thought the VAT reduction was to help businesses

Yes it is. You didnt need to type the rest.

Grumpy_chap

MikeASmith said:

I paid site fees in December 2019

 The site owners have told me that
1. they don't know if they can claim back the VAT being the difference between 20% that I have paid to them and the reduced rate of 5%
2. even if they could they are not prepared to pass on the reduction to me. 

1. They cannot pass the reduction back because the VAT point is invoice date ( when you paid).
2. Irrelevant given 1.

If the next invoice falls due while the lower VAT is in place, this might mean the annual increase is slightly lower than it otherwise would be.

Jeremy535897

Although the basic rule is as I quoted above, it seems there is the possibility of a change, but it is at the discretion of the person raising the invoices. See:
https://www.gov.uk/guidance/vat-guide-notice-700#special-change

jimkelly

As per the last time someone asked this question, you can't get back anything for this year, but next year's fees (due in December) could/should be at 5%

millerston

I have a static caravan 8 month a year , site fees are £2000 a year very quiet site family owned could not use it till July 5th owner says no refund for months we have missed I pay 20% VAT as a pensioner I feel that even something back even if its next year wold be a help .

jimkelly

millerston said:

I have a static caravan 8 month a year , site fees are £2000 a year very quiet site family owned could not use it till July 5th owner says no refund for months we have missed I pay 20% VAT as a pensioner I feel that even something back even if its next year wold be a help .

Firstly, it's not the sites fault that you weren't allowed to visit, it was the law of the land that said you could not.

Secondly, I assume that you still want the site to be available (and in business) this time next year - so that you have somewhere to locate your caravan?

As per other threads on everything from gym memberships to PCP on cars, if they start issuing refunds to you and everyone else who requests one, then I would suggest it's a very quick way for a family owned business to end up in financial difficulty, especially in the present climate.

Your best bet is a reduction to 5% VAT for next years fees.