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VAT recovery for public houses

Public houses are subject to the normal rules relating to VAT recovery (see V3.401), including the partial exemption rules (see V3.460) if any exempt supplies are made.

Other practical points for public houses

Accounting and records for pubs

The normal record keeping requirements will be necessary for purchases irrespective of whether the public house operates a retail scheme. For details of the normal record keeping requirements, see V5.201–V5.213G. Sound record keeping is particularly important in the sector, as HMRC is likely to scrutinise records carefully given a perceived threat that public houses may seek to exploit high sales volumes and cash sales in order to under declare output tax. In particular, public houses should be in a position to explain any discrepancies in sales figures resulting from wastage or the lower margins