Wilba - Answered a Question by Tindall (27 Jan 09 23:07)

Where on your invoice is VAT shown? If it ain't there, it don't exist!

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BLYTH - Answered a Question by Tindall (27 Jan 09 16:06)

There is no VAT on holidays I know of, they are regared as transport or something of that ilk and so no VAT, now a currency movement that might at some point have an effect or Government changes but I don't see at the bottom ouf our account and VAT is ..........

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Neal - Answered a Question by Tindall (27 Jan 09 17:58)

Hi. In short, as Blyth's answer, VAT isn't charged - hence the price is unaffected by the reduction in VAT. VAT is not charged because transport is zero-rated and the tour operator can count as "transport" all the elements included in the ticket price - food, entertainment, etc. And in any case only the first leg, ie to the first overseas airport or port-of-call, is within UK VAT jurisdiction - so if VAT were to be charged, it wouldn't have a dramatic impact. Even round-Britain cruises stray into international waters, so presumably some of "grey" areas such as purchased drinks, optional restaurant upgrades, etc are unaffected. To add further complications, travel agents commission depends broadly on whether they sell on behalf of the operator (no VAT) or buy & sell on (effectively VAT on their commision), and transfers within the UK are standard-rated by taxi but zero-rated by air or coach. Then there's complications with excursions at UK ports-of-call and included overnights at UK hotels, but think I'll skip them - I'm getting very bored, & guessing you are too! Doesn't surprise me that passengers get confused, but I am surprised that Tindall isn't the first passenger in these pages to have been blanked by their travel agents, who should surely know the basics. Chris .

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Ruth Gale's blog

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