The question was whether a taxpayer can deduct as input tax the VAT which it has incurred in purchasing entitlements to an EU farm subsidy, the Single Farm Payment. The taxpayer had used those entitlements to annual subsidies over several years and intended to use money resulting from the receipt of those subsidies to fund … Continue reading Revenue and Customs v Frank A Smart and Son Ltd: SC 29 Jul 2019
The Commissioners appealed an order reinstating the registration of the respondents for VAT. The respondents made largely exempt supplies. They were members of a group of companies, each trading similarly. They had sought an alteration from group registration to individual registrations. Such registrations were voluntary because their vatable turnover would be below the limits. The … Continue reading Commissioners of Customs and Excise v Eastwood Care Homes (Ilkeston) Ltd and Others: ChD 8 Nov 2001
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
VDT VAT – AVOIDANCE – Abuse of rights – Appellant associate of exempt trader purchasing assets to lease to separate company to lease on to exempt trader – Associate outside VAT group – Associate credited with input tax on purchases – Insertion of separate company avoided direction under VATA 1994 Sch 6 para 1 – … Continue reading Weald Leasing Ltd v Revenue and Customs: VDT 6 Feb 2007
The defendants suspected a carousel VAT fraud. The defendants appealed a finding that there was a viable cause of action alleging a ‘conspiracy where the unlawful means alleged is a common law offence of cheating the public revenue’. The defendants argued (inter alia) that the attempted recovery was void under the Billl of Rights. Held: … Continue reading Total Network Sl v Customs and Excise Commissioners: CA 31 Jan 2007
The taxpayer operated a substantial loyalty reward scheme (Nectar) for assorted companies. The Revenue appealed against an order allowing the company to reclaim input VAT. The court was asked now: ‘what is the proper characteristic, for VAT purposes, of the payment made by LMUK to those other suppliers; is it a payment for a redemption … Continue reading Revenue and Customs v Loyalty Management UK Ltd: ChD 22 Jun 2006
ECJ Judgment – Failure of a Member State to fulfil obligations – Value added tax – Sixth Directive 77/388/EEC – Directive 2006/112/EC – Articles 132(1)(a) and 135(1)(h) – Exemptions – Public postal services – Postage stamps – Directive 97/67/CE Citations: C-114/14, [2015] EUECJ C-114/14, ECLI:EU:C:2015:249 Links: Bailii Jurisdiction: European VAT Updated: 04 July 2022; Ref: … Continue reading Commission v Sweden: ECJ 21 Apr 2015
A company made arrangements for finance for its customers to purchase products at an apparent zero rate of interest. In fact the finance company deducted an undisclosed commission before forwarding payment to the shop. The shop wanted to pay VAT only on the amount it received. It was held to be liable on the amount … Continue reading Primback Ltd v Commissioners of Customs and Excise: ECJ 15 May 2001
Europa Turnover tax – Common system of value added tax – Article 17 of Sixth Directive 77/388/EEC – Deduction of input tax – Amendment of national legislation – Retroactive effect – Principles of the protection of legitimate expectations and legal certainty Citations: C-376/02, [2005] EUECJ C-376/02 Links: Bailii Jurisdiction: European VAT Updated: 22 April 2022; … Continue reading Goed Wonen (Taxation): ECJ 26 Apr 2005
A Jersey Charity created under a will of a Jersey resident was transfer to the UK, and reregistered with the UK Charity Commission. The Revenue sought to apply Inheritance Tax. Held: Jersey was to be considered a third country for the purpose of a transfer of capital from the United Kingdom. The restriction of relief … Continue reading Routier and Another v Revenue and Customs: SC 16 Oct 2019
The taxpayer sold double glazing, supported by an insured guarantee, for which a charge was made. The additional charge was exempt, but it was contended that the contract should have stated the amount pursuant to Note 5. Held: The contract gave the rate of charge at 10 per cent. The Act allowed the commisioners to … Continue reading C R Smith Glaziers (Dunfermline) Limited v Commissioners of Customs and Excise: HL 20 Feb 2003
ECJ VAT – Special scheme for travel agents – Transactions carried out outside the European Union – Sixth Council Directive 77/388/EEC – Article 28(3) – Directive 2006/112/EC – Article 370 – ‘Standstill’ clauses – Amendment of national legislation during the transposition period C.G. Fernlund C-599/12, [2014] EUECJ C-599/12 Bailii European VAT Updated: 01 December 2021; … Continue reading Jetair And Btw-Eenheid Btwe Travel4You v FOD Financien: ECJ 13 Mar 2014
The Directive required member states to exempt from VAT, services involving the provision of insurance, and for intermediaries. Following the Regulator’s involvement, the principal company had to arrange for the checking of existing policies, and the implementation of compensation arrangements, and sub-contracted it to the taxpayer. Had the principal privided the services itself, it would … Continue reading Commissioners of Customs and Excise v Century Life Plc: CA 19 Dec 2000
The charity appealed against refusal to allow it to reclaim input VAT. It also sought judicial review of the decision of the Tribunal not to allow it to raise an argument of legitimate expectation. The charity had various subsidiaries conducting commercial activities, which paid VAT in its supplies. The parties disputed how input taxes were … Continue reading Oxfam v Revenue and Customs: ChD 27 Nov 2009
A non-takeaway restaurant is a supply of services, and a ferry supply was made from its place of business. The supply of prepared food and drink at a restaurant resulted from a whole series of services (including the preparation and service of the meal); and that since restaurant transactions were characterised by a cluster of … Continue reading Faaborg-Gelting Linien v Finanzamt Flensburg: ECJ 2 May 1996
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, but then submitted a rebate claim based upon the market value, the ‘non-monetary … Continue reading Lex Services plc v Her Majestys Commissioners of Customs and Excise: HL 4 Dec 2003
References: [2003] UKHL 67, Gazette 22-Jan-2004, [2004] STC 73 Links: House of Lords, Bailii Coram: Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Millett, Lord Walker of Gestingthorpe When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher … Continue reading Lex Services plc v Her Majesty’s Commissioners of Customs and Excise: HL 4 Dec 2003