My client has a field where he allows people to walk their dogs. He charges them for the use of the field as a safe and secure dog-walking area and is promoting it as such. Should he be accounting for VAT on that charge?

He is considering adding a refreshment area to supply drinks and snacks to the walkers. He is also thinking of building ramps and other facilities akin to ‘dog agility’ structures, to make it more interesting for the dogs, and providing agility and basic behaviour training sessions.

The question here is whether there is a granting of a licence to occupy land or the provision of services. The former would be exempt from VAT (subject to an option to tax being exercised), while the latter will be taxable.