Changes to VAT in the United Kingdom
Applicable from 15 July 2020 to 12 January 2021
As of the 15th July, value added tax (VAT) in the United Kingdom will apply to accommodation bookings at a rate of 5% instead of 20%. This is a temporary measure effective until the 12th January 2021.
Cheval Collection is contacting all guests who have made a booking at one of our Residences with stays falling within these dates, and where the rate paid was inclusive of 20% VAT. If you have received a message from us or if you think you qualify, we are offering our guests one of the options below.
NB: For any new bookings made from the 15th July, the new VAT rates have been updated and you do not need to do anything.
What are my options?
- We can refund the difference between what you paid originally and the new rate.
EXAMPLE: If you paid £120 for your stay, £20 of that amount was made up of a 20% VAT levy which Cheval passes on to the government. With a new rate of 5%, the tax is only £5 for a revised total rate of £105. We will refund you the £15 difference.
2. We can credit the amount you are owed against your upcoming stay assuming you haven’t pre-paid the full amount.
EXAMPLE: If you booked a stay for £120 but only paid 50% (£60) up front, instead of owing Cheval the balance of £60, you would now only need to pay £45. [New rate of £105 minus £60 deposit = £45]
3. We can credit the amount you are owed against a future stay
EXAMPLE: You paid £120 for your stay but the revised cost with the VAT reduction is £105. We will hold £15 against your account and apply it the next time you book a stay with us.
What do I need to do?
If you’ve been contacted by our team please advise which of the above options suits you best and we’ll make the arrangements.
If you have not been contacted and made a booking directly either on Cheval’s website or by contacting our reservations team, please email email@example.com with your booking reference, full name and dates of your stay and we’ll get back to you within 24 hours.
What if I booked with an online travel agent? (Booking.com, Expedia.com etc.)
If your stay was booked with an online travel agency such as Expedia, Booking.com or Trip.com, any potential refund of VAT will be subject to their policies. We will, however, be happy to assist you. Please contact our reservations team directly firstname.lastname@example.org with your booking reference number, full name and dates of your stay.
What if I’m staying for more than 28 nights?
For continuous stays of more than 28 nights in England, a reduced rate of VAT applies from the 29th night. From the 15th July 2020 until the 12th January 2021, inclusive, this rate drops to 1% – it was previously 4%. If you are staying with us for a longer period, our team will calculate the difference and update you with your revised weekly rate.