VAT TREATMENT OF CREDIT CARD CHARGES

Following the recent case of HM Revenue & Customs (HMRC) vs Bookit (and a similar Scottish case, SEC), HMRC decided that, effective 1 June 2007, credit card handling charges would become subject to VAT. 

ABTA’s Position

ABTA has argued against this with assistance of leading Tax Counsel, and has issued guidance to Members.  No further action is being taken by ABTA at this time as we are not directly affected by this change and have no reason to do anything in the courts.  We have advised Members that, should any of them wish to take action in their own name, ABTA would provide all necessary support.

Last updated: 8 April 2008