Temporary reduced VAT rate did not apply

The taxpayer advertised its services as being for ‘the provision of driving lessons off the highway for under 17s’. However when a temporary 5% VAT rate was introduced on 15 July 2020 for admissions to tourist attractions and cultural events - to help the hospitality industry cope with the Covid-19 pandemic - the wording on its website was changed to ‘driving experiences for under 17-year-olds’. The taxpayer also submitted a VAT484 to HMRC to change its trade classification.

Note that the legislation was temporarily amended at VATA 1994 Sch 7A Group 16 Item 1 so that admission fees to ‘shows and certain other attractions’ qualified for 5% VAT between 15 July 2020 to 30 September 2021 and 12.5% VAT up to 31 March 2022. The legislation specifically included admission to shows theatres fair circuses cinemas amusement parks and similar cultural events.

The...