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<p>VAT has been designed as a broad-based tax on consumption, and the 20 per cent
standard rate applies to the vast majority of goods and services.</p><p> </p><p>It
would be administratively challenging for suppliers to identify and apply a different
VAT treatment to supplies based on the type of event and for HMRC to ensure that the
VAT treatment and VAT accounting is applied correctly throughout the supply chain.
Businesses and organisations in the supply chain are normally able to recover VAT
on costs. However, they are unable to recover the VAT on costs used in making exempt
or out of scope supplies.</p><p> </p><p>The Government keeps all taxes under review
and welcomes representations to help inform future decisions on tax policy, as part
of the tax policy making cycle and Budget process.</p>
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