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The steps involved in determining whether an establishment is ‘similar� to a hotel, inn, or boarding house have been simplified since Note 9 was inserted into Group 1, Schedule 9, in November 1986.

Prior to the insertion of Note 9, the issue of whether an establishment was a ‘similar establishment� was solely a matter of fact and impression.

Note 9 simplifies the matter by deeming an establishment to be a ‘similar establishment� if it provides furnished sleeping accommodation and is used or held out for use by visitors and travellers. It follows that if an establishment meets these conditions it is automatically treated as a similar establishment and there is no need to consider the factors described later in this chapter.

However, Note 9 does not provide an exhaustive definition of ‘similar establishment� and establishments that do not meet the conditions of Note 9 should nevertheless be treated as ‘similar establishments� if they are similar to a hotel, inn or boarding house as a matter of fact and impression. VATLP11330 provides guidance on how to determine whether this is the case.