§ Mr. Greenwayasked the Chancellor of the Exchequer if he will take steps to exempt from value added tax sales of any particular horse or pony on all occasions subsequent to the first sale, as in the case of motor cars.
§ Mr. Peter ReesNo. An exemption would not be appropriate (and supplies of used motor cars are not in fact exempt). If my hon. Friend is proposing a secondhand scheme for horses and ponies, I will bear his suggestion in mind.
§ Mr. Horamasked the Chancellor of the Exchequer what action he proposes to take to amend schedule 4 of the Finance Act 1972 in the light of the recent decisions in the London value added tax tribunal that the installation of double glazing was taxable at the standard rate.
§ Mr. Peter ReesI will let the hon. Member have a reply as soon as possible.
812W
§ Mr. Adleyasked the Chancellor of the Exchequer what estimate he has made of the cost to the Revenue of zero-rating value added tax on the hotel bills of foreign visitors; and if he will make such an estimate if none exists.
§ Mr. Peter Rees[pursuant to his reply, 30 July 1980, c. 713]: About £100 million in a full year, with a wide margin of error; only the broadest of estimates can be made.
§ Mr. Adleyasked the Chancellor of the Exchequer if any EEC member States or associate member States, have arrangements whereby value added tax on foreigner's hotel bills is eligible for rebate; and if he will list them.
§ Mr. Peter Rees[pursuant to his reply, 30 July 1980, c. 715]: Within the European Community, any refund arrangements in relation to hotel bills are limited to expenditure by businesses. Available information suggests that registered traders from other EEC member States may, subject to certain conditions, reclaim from the relevant tax authority VAT charged on all hotel bills in Germany or Italy and on some hotel bills in Netherlands, Belgium or Luxembourg; in no circumstances is VAT on hotel bills thought to be recoverable in Denmark, France or Ireland.
In accordance with the EEC eighth VAT directive the Government will be proposing the introduction of similar refund arrangements in the United Kingdom in due course.
I regret that information concerning practices in associate member States operating a VAT system is not readily available.
§ Mr. Adleyasked the Chancellor of the Exchequer in which other countries value added tax rebates are made to foreigners on the purchase of any goods, but denied on the purchase of all services.
§ Mr. Peter Rees[pursuant to his reply, 30 July 1980, c. 715]: It is the general practice among countries operating value added tax systems to grant relief from the tax for goods which are exported and, in most cases, for specified international services.
813W
§ Mr. Adleyasked the Chancellor of the Exchequer if he will indicate the rate of value added tax applicable on hotel accommodation in each of the nine EEC countries.
§ Mr. Peter Rees[pursuant to his reply, 30 July 1980, c. 776]: The following is the latest available information:
United Kingdom 15%* Belgium tourist category hotels 6%† other hotels 16% Denmark 22% France tourist category hotels 7%† other hotels 17.6% Germany 13% Ireland 10% Italy ordinary hotels 8% luxury category hotels 15% Luxembourg 5% Netherlands short stay 4% other exempt Notes: * There are special rules enabling VAT to be charged on the basis of a reduced value for long-term residents. † The reduced rate applies to the category of hotel and applies to all those who occupy hotel accommodation, irrespective of whether they are tourists or not.