Value Added Tax

HC Deb 26 July 1979 vol 971 cc421-2W

Mr. Adley

asked the Chancellor of the Exchequer which service industries are enabled to claim exemption from value added tax on the export content of services provided, when the relevant service is provided by United Kingdom companies to foreigners.

Mr. Peter Rees

Relief from VAT is given to a wide range of services which are provided by United Kingdom traders to overseas persons. Broadly speaking, but with some exceptions, relief is confined to those services not used within the United Kingdom.

Mr. Adley

asked the Chancellor of the Exchequer in which other EEC countries hotels can claim value added tax rebate in respect of the content thereof paid by foreign visitors, thus qualifying for rebate by virtue of the export content of the service provided.

Mr. Peter Rees

In general, supplies of hotel services in other EEC member States are liable to VAT at a positive rate. None of these countries is known to operate any VAT schemes specially favouring foreign as distinct from domestic visitors.