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Posted Thu, 26 Oct 2023 12:49:10 GMT by
The caravan park on which I have a caravan for family use has just done their yearly increase of ground rent but all they have done is increase last year's total ground rent which already included VAT. Is that not also increasing last year's VAT by the same percentage? Should they not have taken the VAT off before the increase and then and the current VAT on to the increase?
Posted Fri, 27 Oct 2023 11:33:49 GMT by HMRC Admin 13 Response

Hi,

HMRC can't dictate how much a supplier charges for a service or how it calculates an increase in price.
HMRC will only insist that VAT is applied to the full value of the supply and that this is accounted for on their VAT returns.

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