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Focus GroupsVAT Liability of Stabling and Livery Services (notice 701/15)The following is an explanation of a VAT Tribunal decision on the VAT liability of stabling and livery services supplied together.Tribunal Decision The supply of livery services in conjunction with the exempt supply of stabling was a single standard-rated supply. The Tribunal found that the stabling was the principle element of the supply and that the livery services were ancillary to it. There was therefore a single exempt supply. Application of the decision If you supply stabling and livery services together as a single supply, then subject to the following paragraphs your supplies are exempt from VAT. VAT Information Sheet 02/2001 gives more information on whether a transaction consists of a single composite supply or not. What are livery services? These are services provided for horses in a stable that go beyond the right to occupy the stable. They may include feeding and watering, mucking out, turning out, worming, clipping, plaiting, exercising, cleaning tack, grooming, breaking in, schooling and arranging for vets. It does not include clearly identifiable separate supplies such as vet’s services. When is the supply of stabling exempt? If you rent stabling to a horse owner then, provided you allow that owner exclusive use of the stabling (i.e. you allocate or an identifiable part of the stabling for the sole use of their horse), this is a supply of the right over land, which is exempt unless you have exercised “the option to tax”. If you do not make a supply of a right over land, your supply will be standard rated. DIY Livery The supply of stabling only. Please refer to the above paragraph to decide its liability. Special purpose stables The Tribunal decision does not affect the liability of the supplies made by racehorse trainers and stud farm owners or stables that specialise, for example, in breaking in and schooling. The principle supply in these circumstances is not a supply of the right to occupy a stable. Keep of animals The liability of the supply of the keep of animal is unaffected by the Tribunal decision and remains standard rated.
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