This appeal is about an elaborate scheme designed and marketed by KPMG relating to demonstrator cars used by retail distributors for test drives and other internal purposes. In the ordinary course, a car distributor will buy new cars for use as demonstrators, paying VAT on the full amount of the sale price. This will in … Continue reading Revenue and Customs v Pendragon Plc and Others: SC 10 Jun 2015

Judges: Heather Williams QC Citations: [2019] EWHC 3125 (Admin) Links: Bailii Statutes: Commissioners for Revenue and Customs Act 2005 Jurisdiction: England and Wales VAT Updated: 19 September 2022; Ref: scu.645815

VAT – MTIC – contra-trading – clean chain broker – knew or should have known? – yes – appeal dismissed. Citations: [2011] UKFTT 217 (TC) Links: Bailii Citing: See Also – Totel Distribution Ltd v Customs and Excise VDT 24-Feb-2005 VDT VAT – input tax – alleged carousel fraud – Commissioners unable to establish circulation … Continue reading Totel Distribution Ltd v Revenue and Customs: FTTTx 31 Mar 2011

The claimant sought to appeal against refusal of relief from payment of sums assessed by way of penalty, on the basis of hardship. HMRC argued that the right of appeal underthe 2007 Act had been taken away by the 1994 Act. Judges: Simon J Citations: [2012] QB 358, [2011] BVC 211, [2012] 2 WLR 435, … Continue reading Totel Ltd, Regina (on The Application of) v The First Tier Tribunal (Tax Chamber) and Others: Admn 24 Mar 2011

The retailer accepted coupons issued through newspapers against part of the purchase price of goods. The discount was recovered from the manufacturers on surrender of the coupons. They paid VAT on the discounted value, relying upon Gibbs. The commissioners sought VAT on the amount before the discount. Held: The claimant had misinterpreted the Gibbs case. … Continue reading Yorkshire Co-operatives Ltd v Commissioners of Customs and Excise: ECJ 16 Jan 2003

ECJ Opinion – Interpretation of Article 17(3)(a) of the Sixth VAT Directive – Transactions carried out with the sole aim of obtaining a tax advantage – Provision of vehicle leasing services in the United Kingdom by the German subsidiary of a bank established in the United Kingdom. Judges: Mazak AG Citations: C-277/09, [2010] EUECJ C-277/09 … Continue reading Commissioners for Her Majesty’s Revenue and Customs v RBS Deutschland Holdings: ECJ 30 Sep 2010

reasonable excuse appeal Citations: [2005] UKVAT V19288 Links: Bailii Jurisdiction: England and Wales Cited by: See Also – Neil Martin Ltd v Revenue and Customs Commissioners 28-Sep-2006 The claimant sought damages from the revenue for their failure properly to process his claim for a sub-contractor’s certificate which had led to losses. Held: The revenue owed … Continue reading Neil Martin International Ltd v Revenue and Customs: VDT 10 Oct 2005

VALUE ADDED TAX – Exemption for health and welfare supplies – Group 7, item 1(a) and Note (2), Schedule 9, VATA – Appellant arranges for a diagnostic test to be carried out by a laboratory for the patient who is the Appellant’s customer – the diagnostic test supplied by the laboratory to the Appellant as … Continue reading Lifestyles Healthcare (Europe) Ltd v Revenue and Customs: VDT 20 Oct 2005

The company (LMUK) managed a loyalty scheme for retailers. Their customers were awarded point sunder the schem on purchasing items, and then redeeemed those points against other purchases. LMUK sought to recover input tax on the invoices it paid to the companies accepting the loyalty cards against its sales. LMUK now appealed against refusal of … Continue reading Loyalty Management UK Ltd v HM Revenue and Customs: CA 5 Oct 2007

VDT VALUE ADDED TAX – input tax – suspected carousel or MTIC fraud – input tax repayment withheld pending ECJ judgment in Optigen and others – input tax paid with repayment supplement shortly after release of judgment – whether interest payable in addition – yes – whether rate of interest to be abated because of … Continue reading Totel Ltd v Revenue Customs: VDT 19 May 2006

The taxpayer was sole director of a company. The company provided him with a car, and sought to recover the input VAT. The revenue disallowed the claim saying that it could not be shown to have been used exclusively for company business and not for private use. Held: The taxpayer had a contract with the … Continue reading Commissioners of Customs and Excise v Elm Milk Ltd: CA 3 Mar 2006

The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to the goods purchased. Held: The till slip was insufficent to … Continue reading Revenue and Customs v Debenhams Retail Plc: CA 18 Jul 2005

VDT DEFAULT SURCHARGE – Reasonable excuse – Pressure on taxpayer – Alleged blackmail of taxpayer by Inland Revenue – Alleged misfeasance by Court Service – Taxpayer’s time taken in resisting alleged wrongs – Whether reasonable excuse – No – Taxpayer’s wife acting as book-keeper – Taxpayer’s wife’s illness – Whether reasonable excuse – Not after … Continue reading Garde v Customs and Excise: VDT 25 Apr 2005

The taxpayer supplied sports goods to members of a proprietary golf club. Held: The company was not acting to supply sports facilities. The commercial purpose of the trade undermined the company’s claim to exemption. Citations: [2005] EWCA Civ 648, Times 14-Jun-2005 Links: Bailii Jurisdiction: England and Wales Citing: Cited – Kennemer Golf and Country Club … Continue reading Messenger Leisure Developments Ltd v Revenue and Customs: CA 26 May 2005

The taxpayers sold cable services which were liable to VAT through 28 subsidiaries, and supplied by a third party as part of the same service a listings magazine. They sought exemption from VAT for that part of the consideration related to the magazine. Held: There had in effect to be a novation to convert the … Continue reading Telewest Communications Plc Telewest (Publications) Limited v Commissioners of Customs and Excise: CA 10 Feb 2005

VDT Application: Interlocutory Hearing – Jurisdiction – whether appeal raised in Edinburgh should be transmitted to London in respect that there was another connected appeal there – whether Appellants with potentially conflicting interests could or should be joined together at the instance of the Respondents – practical difficulties – whether appeal should be transferred so … Continue reading RBS Deutschland Holdings Gmbh v Customs and Excise: VDT 16 Nov 2004

The taxpayer had a loyalty scheme under which they issued vouchers to shoppers who had purchased goods to a certain value. They sought to deduct the sums when accounting for VAT. Held: Upon earning 150 loyalty points in a quarter, vouchers were given to customers, and there were other schemes. The entire cycle of transactions … Continue reading Tesco Plc v Customs and Excise Commissioners: CA 14 Oct 2003

A potential lessee who did not have an interest in immovable property agreed to take a lease in return for money paid by the landlord. The transaction was not exempt from value-added tax under article 13(B)(b) as ‘the leasing or letting of immovable property.’ Nor did a person taking an assignment of a lease of … Continue reading Mirror Group plc v Commissioners of Customs and Excise, Cantor Fitzgerald International v Same: ECJ 9 Oct 2001

‘Items’ described as gifts’ which Kuwait Petroleum exchanged under a petrol promotion scheme for vouchers received by customers purchasing petrol were issued ‘free of charge’. The purchase of petrol and the exchange of vouchers for gifts were separate transactions, and the petrol was sold and invoiced for the price paid, there being nothing to suggest … Continue reading Kuwait Petroleum (GB) Ltd v Commissioners of Customs and Excise: ECJ 27 Apr 1999

VALUE ADDED TAX – whether the Appellant properly registered for VAT purposes – paragraph 1(1)(a), Schedule 1, VATA – whether the exception from registration under paragraph 1(3), Schedule I, VATA applied – Customs refusing to take into account uncorroborated representations by the Appellant – Tribunal accepting the Appellant’s representations as to his expectations of the … Continue reading Clements v Revenue and Customs: VDT 18 Aug 2005

Where a payment is made by credit card, some form of underlying contractual scheme will pre-date any individual contract of sale. This may include not merely the contract between the card-holder and card-issuer, but also an arrangement between the card-issuer or acquirer and the store. In over-the-counter sales, the retailer commonly has no record of … Continue reading Customs and Excise Commissioners v Diner’s Club Ltd: CA 1989

West Herts College produced, printed and distributed prospectuses detailing its courses and facilities. The prospectuses were issued free to students and others. The expenditure producing the prospectuses had been treated by the Commissioners as expenditure in making both taxable and exempt supplies on the basis that a proportion of input tax on the goods and … Continue reading Customs and Excise Commissioners v West Herts College: ChD 2001