Readers’ forum: Caravan park

I wondered whether readers could clarify the position with respect to a caravan park taking advance bookings and deposits before the 31 March 2021 where the balance is received and the stay completed after the 31 March 2021.

My interpretation is that the deposit should include VAT at the reduced rate but that the balance would be at the standard rate.

I look forward to hearing from Taxation readers.

Query 19 712 – Camper.

The 5% rate will apply until 30 September 2021.

Subject to an exception for multi-purpose vouchers the position prior to the 3 March 2021 Budget was that the 5% rate of VAT applied to amounts received during the period from 15 July 2020 to 31 March 2021 for qualifying supplies of hospitality hotel and holiday accommodation and admission to certain attractions.

Following the 3 March 2021 Budget this position will continue to...