Within your documents (here) the VAT invoice will show the current VAT rate of 12.5% for your 2022 site fees which has been set by the Government. In 2020, in the middle of the pandemic, the Government reduced the VAT rate for the hospitality industry to 5%, which we passed onto all of our owners. Therefore, the VAT charged on your site fee for 2022 is significantly lower than the VAT rate in 2019, when it was 20%. Below is an example to show the difference VAT makes to the amount you have paid or are due to pay in site fees.
For an example owner on a site fee of £4,000 (excluding VAT), the impact of the changing VAT rate is as follows. Please note - this is an example only and not your actual site fee.
|Month & year the site fee was applied to your account||Site fee value (excluding VAT)||VAT rate at time of billing||VAT amount||Total site fee bill (including VAT)|
|October 2019 (for 2020)||£4,000||20%||£800||£4,800|
November 2020 (for 2021)
|November 2021 (For 2022)||£4,000||12.5%||£500||£4,500|
Please note: The VAT rate of 12.5% is in place until 31 March 2022, at which point the Government will review the VAT rate.