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Dissenting opinions
Key points
- In previous articles published in Taxation David Pedley states his view that business rates recharged with pitch fees are not VATable and neither HMRC nor the site owner can make them so.
- I do not agree with his views – I believe that in this case HMRC is right.
- Business rates are not charged to VAT because taxation is not regarded as consideration for a supply.
- For the ‘rates’ element not to be subject to VAT there are two possibilities. The first is that the SO is somehow making a mixed supply to the CO. The second better argument is that the ‘rates’ element is a disbursement.
- Mr Pedley needs to persuade his site operator to ask HMRC for a ruling on the liability of the recharge of business rates and armed with the points laid out in this article...
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