VAT question

My business partner has a receipt for a hotel stay which I am paying through the business. However it is not a VAT receipt (even though VAT is chargable on accommodation).

The room was booked through Last Minute and they claim they cannot give a VAT receipt as they are an agent (sounds fair enough) but the hotel say they cannot issue one as our contract was with Last Minute!

So – assuming that the payment must have included VAT, why cannot anyone give us a VAT receipt????

Is this legal?

Whoever took the cash should provide the VAT receipt [as long as they're VAT registered]

Whoever took the cash should provide the VAT receipt

Last Minute's stance…

I have no idea how lastminute work but other 'agents' AFAIK just take a commission from the hotel
Therefore the hotel needs to provide the receipt

TBH – I'd just put it through & forget about it

Well I could as we aren't gonna lose out, but it seems an odd situation – surely anyone charging VAT has to be able to provide the VAT receipt (by law) but on this occasion both parties seem to be ducking responsibility.

I use hotels.com quite a bit & always get a VAT receipt from the hotel – I'm a bit surprised that the hotel actually had anything other than VAT receipts

I'm a bit surprised that the hotel actually had anything other than VAT receipts

But the payment was made to Last Minute so the hotel didn't issue an invoice/receipt etc.

I think I can see why they're reluctant

You pay Lastminute £100 inc VAT [VAT = £13.04]

Lastminute pay the hotel £80 inc VAT [VAT = £10.43]

So the Hotel only collects £10.43 in VAT & you're asking them to confirm that they received £13.04 {which they'd have to pass on to Gordon)

Tough one

Lastminute should issue the receipt then

It is an odd one, but notwithstanding anything – someone has collected VAT, that person has to declare the VAT and I am due the right to a refund as my business is VAT registered!

It would be like me refusing to give a client a VAT receipt for some print I had bought on their behalf.

Just had this from Last Minute…

We are unable to issue a VAT invoice to you for this booking as lastminute.com operates under tour operator margin scheme (TOMA) and we are not required to issue a VAT invoice.

Certain professions are exempt from issuing VAT receipts. (IFA's for instance, cannot) Ask your acct.

If lastminute.com take a commission from the hotel, rather than buying a room at a discounted rate and then charging a higher rate to you, then VAT is not chargable on a commission payment.

Therefore it would mean they may not need to be VAT registered – hence unable to issue a VAT receipt!?! But if that was the case the hotel should be able to issue a VAT receipt with no issue as it would show the full payment for the room and correct VAT amount.

All seems very odd either way…maybe try asking the nice (!?!) VAT folks direct?

Well yeah – I can understand Last Minute's stance on this, but we have the hotel on the other side saying they cannot issue a VAT receipt either!

Surely someone must be obliged to provide one!???

"nickc – Member
Certain professions are exempt from issuing VAT receipts. (IFA's for instance, cannot) Ask your acct."

Of no real relevence to the thread but to clarify – IFA's and Financial Advisers in general don't issue VAT receipts as they are paid by commission from the compnaies they introduce business to. However; if they charge fees then these can incur VAT if they bill enough to go over the VAT threshold. So they are not strictly speaking exempt.

Pointless info but thought I'd add it anyway…I must be bored today!?!

Another one of no relevance

Bookmakers & other gambling businesses cannot reclaim any VAT that they pay to other businesses

And charities cannot be VAT registered. Which I have always found odd.

For One your contract is with Last Minute
The Hotel has sold the room to Last Minute that is how it works.

Me I would give it to my Accountant has its part of expenses
Same has I did when I bought my bike, nice Orange 5 AM 8)

Yeah it is going in as expenses, but I just noticed that there was no VAT when there 'should' be and I was curious.

How did you get away with putting a bike through expenses? (Unless your business needs bikes to run).