SearchTaxpayer victory leads to room hire VAT exemption
A recent First-Tier Tribunal (FTT) decision in the taxpayer’s favour has helped clarify that room rental is VAT exempt, but standard rating can apply if additional services are also supplied, such as a hairdresser renting chair spaces.
The FTT case involved hair and beauty business, Errol Willy Salons, hiring out two spare rooms to self-employed beauticians. Exempt VAT treatment suited the beauticians who were not VAT-registered.
