- The case of Go City Ltd involved the VAT treatment of sightseeing passes
- The passes were sold at a price lower than the usual admittance price at attractions
- HMRC initially accepted the passes as face value vouchers but later changed their view
- The difference in VAT treatment is between face value vouchers and single-purpose vouchers
- Go City Ltd argued that the passes were multi-purpose vouchers and output tax was only due when redeemed
- HMRC contended that the passes were tickets and output tax was due up-front
- The appeal was allowed and the passes were considered multi-purpose vouchers
- The passes were outside the scope of VAT because they were multi-purpose vouchers
- HMRC’s assessments were ruled invalid as they were raised before a final decision was made
- Recent changes have altered the UK rules for face value vouchers, which include vouchers sold by discount websites and high street retailers.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
