Fishy VAT Ruling

The Fishy VAT Argument

A taxpayer recently attempted to challenge HMRC’s VAT treatment of fishing day tickets, arguing that the service constituted a mixed supply. The argument was that purchasing a ticket allowed an angler both to fish (a standard-rated service) and to keep up to five fish (a zero-rated supply of goods).

However, the tribunal ruled against this interpretation, determining that the fishing ticket was a single taxable supply, meaning it remained standard-rated for VAT purposes. The decision was influenced by the fact that anglers would not receive a refund if they caught no fish, proving the primary purpose was the right to fish, not the supply of fish.

Why This VAT Ruling Matters

This case highlights the importance of correctly identifying whether a service involves a mixed or single supply for VAT purposes. HMRC generally treats activities involving both goods and services as a single supply when they are closely linked.

For angling businesses or similar activities, this means:

• Fishing day tickets remain standard-rated for VAT purposes.
• Even if fish can be kept, the primary supply is still the right to fish.
• The absence of a refund option reinforces that VAT applies to the entire service.

Businesses should review their VAT classifications to avoid disputes and unexpected tax liabilities.

How We Can Help

At Lewis Brownlee, we help businesses navigate complex VAT classifications like the Fishy VAT ruling, ensuring they remain compliant and tax-efficient.

We offer a free introductory meeting to discuss VAT obligations and strategies for minimising unnecessary tax exposure. Help is at hand!

For expert VAT advice, contact us today.

Final Thoughts

The Fishy VAT ruling serves as a reminder that the primary purpose of a transaction determines VAT treatment. Proper classification and tax planning are essential to avoiding HMRC disputes.