Who supplies a hotel bed?

Posted: 28th September 2011

It may seem fairly obvious that the supplier of hotel accommodation is the hotel, but HM Revenue and CustoHotel Pool 2ms (HMRC) recently tried to persuade the Tribunal that hotel accommodation sold via a website was supplied by the website owner.

Therefore, said HMRC, if a person books a foreign hotel room using a UK-based website, the supply should be standard-rated for VAT purposes.
The Upper Tribunal gave this argument short shrift, ruling that the supply was made by the owner and the website was merely the agent of the hotelier concerned.