Ticket booking fees
If you sell tickets, such as for exhibitions or other events, the booking fee may be exempt from VAT as a supply of a financial service. This follows a tribunal decision in a recent case brought by National Exhibition Centre Ltd.
Although the booking fee was said to cover various overheads such as postage, labour and IT maintenance charges, the reality was that the fee covered only the cost of card processing. The amount charged was more than the actual cost incurred.
The tribunal found that it did not matter that the booking fee was more than the costs incurred in card processing. It also did not matter that the transaction codes were received by the merchant handler rather than the exhibition organiser.
It should be noted that the exemption for financial services is an area where there have been many cases and other developments in recent years.