FTTTx VAT – DEFAULT SURCHARGE – reasonable excuse – reliance on others – illness of spouse – appeal dismissed
Citations:
[2009] UKFTT 84 (TC)
Links:
Jurisdiction:
England and Wales
VAT
Updated: 03 August 2022; Ref: scu.373662
FTTTx VAT – EXEMPT SUPPLY – Appellants granted a lease to various connected companies – Appellants contended that they provided facilities to the companies which was a standard rated supply – Appellants’ analysis flawed – their supply was a grant of legal interest of possession in a property which was exempt from VAT – Appeal dismissed
[2009] UKFTT 92 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373666
FTTTx Value added tax – whether goods fell to be zero-rated as goods intended for export to a place outside the member States supplied otherwise than to a taxable person to a person not resident in the United Kingdom – whether the Appellant was a person not resident in the United Kingdom at the time(s) of supply of the goods – held he was not – regulation 129 of the VAT Regulations 1995 – appeal dismissed
[2009] UKFTT 99 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373656
FTTTx SECURITY – requirement for – whether requisite for the protection of the Revenue – VAT compliance of previous companies with which director concerned – VATA 1994 Sch. 11 para 4(2) – Appeal Dismissed.
[2009] UKFTT 129 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373670
FTTTx Value Added Tax – Assessments under s.73(2) VATA 1994 – Time limit for making assessments – Date when evidence of facts sufficient in the Commissioners’ opinion to justify making assessment, came to their notice – S.73(6)(b) VATA 1994 – Assessments out of time – Appeal allowed
[2009] UKFTT 88 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373663
FTTTx Value Added Tax – Best judgment – Restaurants (takeaway and eat in) – Whether agreement on zero/standard rated supplies pursuant to Reg.67(1) VAT Regs – Yes – Whether two days invigilation sufficient to make best judgment assessment – Yes – Appeal partly allowed
[2009] UKFTT 83 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373658
FTTTX VALUE ADDED TAX – assessments – dishonest evasion – take away food outlets – test purchases, cashing up and analysis of Z-readings – conclusion that takings understated – assessments made to recover tax – one business unregistered – whether registration threshold exceeded – yes – whether assessments undermined by claims of errors, hoax calls and closure of nearby competitors – evidence of such factors tenuous – assessments upheld
DISHONESTY PENALTY – whether dishonesty established – yes – whether mitigation allowed by respondents adequate – yes – appeal dismissed
[2009] UKFTT 90 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373644
FTTTx Value Added Tax – company liable to a penalty for dishonest evasion of VAT under s.60 VATA – penalty proposed to be recovered from the Appellant (as a ‘named officer’) under s.61 VATA – dishonesty on the part of the Appellant admitted – decision to apportion the whole of the penalty to the Appellant disputed – Appellant submitted on the facts that other directors of the company had knowledge of the dishonesty – that submission rejected – held that the Appellant’s dishonesty rendered him liable to the penalty in any event – Appeal dismissed
[2009] UKFTT 109 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373643
FTTTx Value Added Tax – Default Surcharge – Late filing of return resulting in part from various changes of address and the failure to receive the Return Form – Inadequate advice given to the trader by his regular contact in the Debt management section of HMRC – Appeal allowed
[2009] UKFTT 103 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373647
FTTTx DEFAULT SURCHARGE – Electronic payment- Extension under Notice 700, para 21.3.1 – Payment initiated on 6 October and received on 8 October – No reasonable excuse – Appeal dismissed
[2009] UKFTT 110 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373642
FTTTx VALUE ADDED TAX – appeal against refusal of request by Appellant to retrospectively amend the effective date of voluntary registration – error by Appellant on application form for registration – schedule 1, para 9 VATA 1994, Regulation 111(2) VAT Regulations 1995 – appeal dismissed
[2009] UKFTT 115 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373639
FTTTx VAT – Default surcharge – assessment not valid if based on incorrect specified percentage- assessment incapable of amendment if wrong from the start – Dow Chemical Company Ltd (1995) considered.
[2009] UKFTT 136 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373645
FTTTx ZERO-RATING – whether grants of leases of parking spaces were sufficiently closely linked with grants of leases of residential apartments – single economic transaction – no
[2009] UKFTT 102 (TC), [2009] STI 2612, [2009] SFTD 233
England and Wales
Updated: 03 August 2022; Ref: scu.373637
FTTTx VAT – default surcharge – assessment not valid if based on incorrect specified percentage – assessment capable of amendment if specified percentage prima facie correct at time of issue – whether reasonable excuse- no – appeal dismissed
[2009] UKFTT 98 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373648
FTTTx VALUE ADDED TAX – Take-away business – Invigilation and test purchases carried out – Assessments on basis suppression shown on day of test purchases alone – Whether best judgment – Appeal allowed in part
[2009] UKFTT 86 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373650
FTTTx VAT – import tax – repayment claim said to be based on Appellant having purchased computer system and software relating to bank charge recovery system – whether supply took place at all – on evidence no – appeal dismissed
[2009] UKFTT 105 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373649
FTTTx VAT – EXEMPT SUPPLIES – HEALTH AND WELFARE – Whether Intense Pulse Treatment (permanent removal of unwanted hair) constituted medical or surgical treatment – No – breach of fiscal neutrality – No – Appeal dismissed – Item 4 Group 7 Schedule 9 VAT Act 1994.
[2009] UKFTT 87 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373634
FTTTx VAT – ASSESSMENT – FLAT RATE SCHEME – Appellant traded as courier – unaware of the change in the flat rate scheme from April 2004 – continued to apply the previous rate resulting in an under-payment of VAT – No deliberate attempt by the Appellant to avoid its responsibilities – Appellant believed that HMRC partly to blame for the default – no substantive challenge to the legality of the assessment – Appeal dismissed
[2009] UKFTT 116 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373636
FTTTx Value Added Tax – Land and Property – Supply of holiday home – Whether separate supplies of land and construction services – Zero-rated or standard rated – Group 5, Sch 8 VATA 1994 – Whether abusive practice – Yes – transaction redefined as one supply – Standard rated – Appeal dismissed
[2009] UKFTT 38 (TC), [2009] STI 1937
Updated: 03 August 2022; Ref: scu.373617
FTTTx VAT – Notice of Assessment – Appellant farmer – legitimate user of rebated diesel fuel – road vehicle detected with rebated fuel in running tanks – audit exercise – availability of invoices or receipts to establish purchases of Derv in Republic of Ireland – records not kept – Notice of Assessment – gaps in analysis for audit purposes – appeal – explanation forthcoming – assessment adjusted downwards – appeal allowed to that extent
[2009] UKFTT 41 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373621
FTTTx VAT -zero rating – Article 148(d) of the Principal VAT Directive – services which meet the direct needs of vessels used for rescue or assistance at sea -meaning of ‘direct needs’- whether alterations or repair and maintenance services for lifeboat stations and other equipment meet the direct needs of lifeboats.
[2009] UKFTT 39 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373628
FTTTX Value added tax – whether assessment made to best judgement – s 73(1) VATA 1994 – retail scheme – application of direct calculation scheme 1 – use of mark-ups to determine expected selling prices – adjustment of expected selling prices to take account of wastage and loss of stock – time limit for making assessment – s 77(1)(a) VATA 1994 – assessment made to best judgement but reduced by application of three year ‘capping’ rule – appeal dismissed
[2009] UKFTT 37 (TC)
Updated: 03 August 2022; Ref: scu.373631
Value Added Tax: compulsory registration, partnership, property consultant entitled to share of profit; whether remuneration or distribution of partnership funds.
[2009] UKFTT 59 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373623
FTTTX VALUE ADDED TAX- import VAT – Simplified Import VAT Accounting (‘SIVA’)- trader refused entry into scheme – business did not satisfy financial viability as net assets less than average VAT liability – appeal dismissed.
[2009] UKFTT 40 (TC), [2009] UKFTT 00018 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.373613
[2007] EWHC 3134 (Ch)
England and Wales
Updated: 03 August 2022; Ref: scu.263656
VALUE ADDED TAX- zero rating – supplies of sandwiches and cold food to offices and within units in multi-occupancy buildings – VATA Schedule 8 Group item 1 – whether supplies made ‘in the course of catering’ or ‘ food for human consumption’ – meaning of ‘catering’ and exceptions – supplies not made in the course of catering as to sandwiches and cold food – yes as to business lunches – whether the food to be consumed ‘on the premises’ – Note (3) to item 1 -food not consumed on premises – appeal allowed
[2006] UKVAT V19528
England and Wales
Updated: 03 August 2022; Ref: scu.241235
VAT – whether the margin scheme applies to sales of vehicles made by a financier following the recovery of possession of the vehicles on the termination of hire purchase transactions – if not, whether the sales are treated as neither supplies of goods nor services under article 4(1)(a) of the Value Added Tax (Cars) Order 1992/3122 – compatibility of the exclusion from this article under article 4(1AA) of that order with EU law – appeal dismissed
[2018] UKFTT 663 (TC), [2019] SFTD 201, [2018] STI 2386
England and Wales
Updated: 03 August 2022; Ref: scu.632420
VAT- penalty for late payment – whether reasonable excuse – held, no – appeal dismissed – liable for surcharge
[2014] UKFTT 96 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.521684
VAT- penalty for late payment – whether reasonable excuse – held, no – appeal dismissed – liable for surcharge
[2014] UKFTT 97 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.521714
FTTTx VALUE ADDED TAX – recoverable input tax – whether tax in dispute was referable to cost components of the appellant’s business – found on the evidence that some but not all of the tax claimed for repayment was so referable – appeal allowed in part
[2014] UKFTT 82 (TC)
England and Wales
Updated: 03 August 2022; Ref: scu.521692
Subrogation is a remedy, not a cause of action. Subrogation of Customs and Excise to a creditor’s right of proof in the winding up of a supplier was refused as it would have been contrary to the statutory scheme for the administration of VAT.
Slade LJ
[1988] Ch 275
England and Wales
Cited – CTI Group Inc v Transclear Sa Comc 14-Sep-2007
The parties had contracted for the sale of concrete. The buyers appealed findings by an arbitrator that the contracts were both frustrated for the inability of the seller to complete after the intervention of a company with an effective monopoly, . .
Cited – In re Nortel Companies and Others SC 24-Jul-2013
The court was asked as to the interrelationship of the statutory schemes relating to the protection of employees’ pensions and to corporate insolvency.
Held: Liabilities which arose from financial support directions or contribution notices . .
Lists of cited by and citing cases may be incomplete.
Updated: 31 July 2022; Ref: scu.259368
Determination of appeal
[2009] UKFTT 274 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.409073
FTTTx VAT – Late registration – Whether a partnership existed between the appellants which the Commissioners could require to be registered – evidence that the appellants had represented to the Inland Revenue for income tax purposes that they were in partnership and that accounts had been drawn up on that basis – Found as a fact that a partnership existed and was not a sham even though motivated only by a wish to gain an income tax advantage – Appeal dismissed – Penalty for late registration further mitigated to a nominal amount (andpound;50)
[2009] UKFTT 74 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373611
FTTTx VAT – Late registration – Assessments and penalty – Hairdresser operating ‘chair rental’ scheme – Registration and assessments based on direct tax information – Appeal heard in the absence of the Appellant – Application for adjournment refused but direction made that new evidence and submissions would be considered by the Tribunal if received from the Appellant within 28 days of the release date of this Decision – Failing that the appeal would stand dismissed without a further hearing
[2009] UKFTT 73 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373612
VAT – BUILDERS – Do -it-yourself
[2009] UKFTT 58 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373610
FTTTx VAT – assessment – whether assessment valid as made to best judgment where made in absence of a return and not withdrawn and re-issued on return being furnished – yes – application dismissed
[2009] UKFTT 42 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373597
VAT Penalties – DEFAULT SURCHARGE – reasonable excuse – appeal dismissed.
[2009] UKFTT 51 (TC)
Updated: 30 July 2022; Ref: scu.373604
FTTTx Value Added Tax – Requirement for security – para. 4(2),(4), Sch. 11, VATA 1994 – connection of control, trade and website address established between the Appellant company and other companies with a history of VAT default and insolvency in the local area – held, requirement for security had not been shown to be unreasonable – appeal dismissed
[2009] UKFTT 72 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373600
FTTTx S73 Assessment: Partnership; one partner bankrupt; appeal proceeding in name of one partner only; repayment claims credibility check; mark-ups on fast selling lines not in line with expected outcomes; local convenience store; unlikely patterns of trading; no adherence to any accepted retail scheme; assessment upheld.
[2009] UKFTT 48 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373596
FTTTx Value Added Tax – Input tax – Attribution of input tax – Opera Company making both exempt and taxable supplies – Company makes exempt supplies of tickets and taxable supplies of sponsorship rights, programmes, CDs etc. to public and makes taxable supplies of productions to outside concert hall – Company pays input tax when obtaining the production inputs required to make the opera productions presented as part of season – Whether input tax on production inputs deductible – Yes – Value Added Tax Regulations 1995, SI 1995/2518 reg 101(2)(b) and (d)
[2009] UKFTT 77 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373609
FTTTx VAT – Default surcharge – Electronic payment of tax received one day after the due date – whether the payment was made ‘at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners’ in time – held that it was – Appeal allowed
[2009] UKTFF 60 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373608
FTTTx Value Added Tax – Default surcharge – First default occasioned by late refusal of bank to advance monies following a long, and initially encouraging, negotiation – second default occasioned by CHAPS payment being late on account of the failure to note that 7 May 2007 was a Bank holiday – First appeal allowed and second appeal dismissed
[2009] UKFTT 52 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373607
FTTTX Value added tax – late registration – exception from registration -Commissioners not satisfied that value of supplies in following year would not exceed deregistration threshold – whether Commissioners had to be satisfied by reference to evidence as at date taxpayer liable to be registered – yes – para. 1(1) and para. 1(3), Schedule 1 VATA 1994 – appeal dismissed
[2009] UKFTT 50 (TC)
England and Wales
Updated: 30 July 2022; Ref: scu.373606
FTTTx Misdeclaration penalty – no appeal against assessment – transfer of land as a going concern – failure of accountants to notify and elect on time – Vat chargeable – no reasonable excuse – mitigation of 70% allowed by Customs – mitigation of 100% allowed by tribunal – appeal allowed
[2009] UKFTT 34 (TC)
Updated: 30 July 2022; Ref: scu.373584
FTTTx Value Added Tax – Whether the Appellant’s late claim for input tax, initially deducted in its Return, but later recovered by HMRC under an assessment, is a claim for input tax under Regulation 29 (1) of the 1995 VAT Regulations or a claim under section 80(1B) of the VAT Act 1994 for the recovery of wrongly paid VAT – whether the decision in Fleming (trading as Bodycraft) v. HMRC, that the imposition of a three-year time limit for the purpose of making claims under Regulation 29 could not be invoked against those with pre-existing claims, applied to inputs incurred and invoiced in April 1997 if the trader’s VAT period ended after 1 May 1997 such that the inputs could not, at 1 May 1997, actually be claimed – Appeal dismissed
[2009] UKFTT 32 (TC)
Updated: 30 July 2022; Ref: scu.373582
Reasonable excuse appeal
[2008] UKVAT V20802
England and Wales
Updated: 30 July 2022; Ref: scu.301793
VDT DEFAULT SURCHARGE – Appellant one day late with his payment – Appellant blameworthy for the default – failed to give priority to his VAT affairs – did not make enquiries with his bank about timescales and cut off time for electronic payments – chose not to reclaim VAT as input tax – benefitted from concession not to enforce surcharges of less than andpound;400 – no reasonable excuse – payment not dispatched in time – ten per cent surcharge proportionate to the Appellant’s transgression – Appeal dismissed.
[2008] UKVAT V20813
England and Wales
Updated: 30 July 2022; Ref: scu.301790
Reasonable excuse appeal – default surcharge
[2008] UKVAT V20799
England and Wales
Updated: 30 July 2022; Ref: scu.301781
reasonable excuse appeal
[2006] UKVAT V19781
England and Wales
Updated: 28 July 2022; Ref: scu.246109
reasonable excuse appeal
[2006] UKVAT V19779
England and Wales
Updated: 28 July 2022; Ref: scu.246102
CONSTRUCTION – Charity constructing self-contained building within derelict warehouse for carrying on its charitable activities – Described by trustee as ‘internal annexe’ – Advised by Commissioners Advisory Service that construction supplies zero rated – Commissioners rule that supplies standard rated – Access to building through walls of warehouse – Whether ‘annexe’ – VATA 1994, Sch 8, Gp 5, Item 2, Nn (6), (16), (17)
[2003] UKVAT V18145
England and Wales
Updated: 28 July 2022; Ref: scu.221164
Reference for a preliminary ruling – Value added tax – Deductions – Exemptions – Supplies of dental prostheses
[2015] EUECJ C-144/13, [2015] STC 1133, ECLI:EU:C:2015:116, [2015] BVC 18, C-154/13, C-160/13
European
Opinion – VDP Dental Laboratory v Staatssecretaris van Financien ECJ 4-Sep-2014
ECJ Advocate General’s Opinion – Taxation – VAT – Exemption of acquisitions of goods- Article 140 a) and b) of Directive 2006/112 / EC – Exemption of imports of goods – Article 143 a) of Directive 2006 / 112 / – . .
Cited – Revenue and Customs v The Investment Trust Companies SC 11-Apr-2017
Certain investment trust companies (ITCs) sought refunds of VAT paid on the supply of investment management services. EU law however clarified that they were not due. Refunds were restricted by the Commissioners both as to the amounts and limitation . .
Lists of cited by and citing cases may be incomplete.
Updated: 28 July 2022; Ref: scu.640868
VAT – best judgment assessment – was it reasonable – yes – was there a taxable supply by the taxpayer to self-employed minicab drivers in respect of the provision of two-way radios and bookings in exchange for ‘circuit fees’ – yes – had output tax been charged on this supply – no – amount of assessment upheld – appeal dismissed
[2014] UKFTT 484 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.526842
Application by Appellant in respect of an appeal against a penalty issued under section 61 VATA 1994 – whether Respondent’s case has no reasonable prospect of succeeding – application refused.
[2014] UKFTT 490 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.526799
VALUE ADDED TAX – denial of credit for input tax – whether evidence that appellant had incurred input tax – no – appeal dismissed
[2014] UKFTT 492 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.526798
Value Added Tax – Calculation of VAT for back periods during which the Appellant had not been registered, but should have been registered according to HMRC – Penalties – Appeal allowed in part
[2014] UKFTT 499 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.526847
VAT– (a) whether assessment in time – s 73 VAT Act 1994 – YES – (b) place of supply of services – nature of accounting services- para 3 sch 5 VAT Act 1994 – whether VATable – NO – Appeal allowed
[2012] UKFTT 320 (TC), [2012] STI 2259, [2012] SFTD 1056
England and Wales
Updated: 28 July 2022; Ref: scu.462701
FTTTx Value added tax – security for the revenue – VATA 1994 Sch 11 para 4(2)(a) – extent required of commissioners’ enquiries – whether outcome inevitably the same despite errors – need for fuller disclosure of reasons – appeal dismissed
Judge Malachy Cornwell-Kelly
[2012] UKFTT 44 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.450844
VAT – INPUT TAX – Appellant claimed VAT on certain items of expenditure – was the expenditure incurred in the furtherance of a business carried on by the Appellant – no business carried on but if there was no clear nexus between the expenditure and the business – Appeal dismissed
[2011] UKFTT 134 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.442896
[2009] UKFTT 273 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.409079
Europa Failure of a Member State to fulfil obligations VAT Directive 2006/112/EC Article 98(1) and (2) Supply of services by undertakers Application of a reduced rate to the service involving transportation of a body by vehicle.
C-94/09, [2010] EUECJ C-94/09
European
Updated: 28 July 2022; Ref: scu.410786
Second-hand goods
[2009] UKFTT 267 (TC)
England and Wales
Updated: 28 July 2022; Ref: scu.409081
ECJ Sixth VAT Directive Second and fourth subparagraphs of Article 4(5) Option of Member States to consider activities of bodies governed by public law exempted under Article 13 and Article 28 of the Sixth Directive as activities of public authorities Rules governing exercise of that option Right to deduct Significant distortions of competition.
C-102/08, [2009] EUECJ C-102/08
European
Updated: 28 July 2022; Ref: scu.347052
ECJ Preliminary references – VAT Exemption for lettings of immovable property – Cleaning of common parts related to the letting – Ancillary supplies.
C-572/07, [2009] EUECJ C-572/07, [2009] STC 2006, [2009] STI 1886
Cited – Baxendale Ltd and Another v Revenue and Customs FTTTx 4-Jul-2013
FTTTx PROCEDURE – striking out of proceedings – whether appellants’ case had a reasonable prospect of succeeding – abuse of process – whether Court of Appeal decision in David Baxendale was per incuriam or . .
Cited – Baxendale Ltd and Another v Revenue and Customs FTTTx 4-Jul-2013
FTTTx PROCEDURE – striking out of proceedings – whether appellants’ case had a reasonable prospect of succeeding – abuse of process – whether Court of Appeal decision in David Baxendale was per incuriam or . .
Lists of cited by and citing cases may be incomplete.
Updated: 28 July 2022; Ref: scu.347051
Briggs J
[2007] EWHC 2750 (Ch)
England and Wales
Updated: 28 July 2022; Ref: scu.262958
reasonable excuse appeal
[2007] UKVAT V20431
England and Wales
Updated: 28 July 2022; Ref: scu.262472
DEFAULT SURCHARGE – Reasonable excuse – Charity training and employing people with learning difficulties – Costs of running charity met from sales and grants from Employment Service and local government – Introduction of minimum wage greatly increased wages – Coincided with substantial reduction in grants – Underlying cause of insufficiency of funds – Whether reasonable excuse – Appeal allowed – VATA 1994, ss 59(1), (7), 71(1)(a)
[2003] UKVAT V18147
England and Wales
Updated: 28 July 2022; Ref: scu.221163
DEFAULT SURCHARGE – Reasonable excuse – Insufficiency of funds – Appellant’s customers included foreign embassies, NHS trusts, local government, Immigration Advisory Service – Invoices paid months or as much as year overdue – Serious effect on cash flow causing insufficiency of funds – Whether reasonable excuse – appeal allowed in part – VATA 1994, ss 59(7)(b), 71(1)(a)
[2003] UKVAT V18146
England and Wales
Updated: 28 July 2022; Ref: scu.221166
Where a body regulated a profession by virtue of a statutory regime, the fees charged by that body to its members were not subject to VAT. Promoting and supervising professional standards is not an ‘economic activity’ within the meaning of the Act.
Times 29-Mar-1999, Gazette 19-May-1999, [1999] UKHL 19; [1999] 2 All ER 449; [1999] 1 WLR 701
House of Lords, House of Lords, House of Lords, Bailii
England and Wales
Updated: 28 July 2022; Ref: scu.135126
The cost of the delivery of a quantity of new cars from the factory or depot to the purchaser is incidental and ancillary to the supply of the cars themselves, and the VAT on delivery charges was not reclaimable by the purchasing company as Input Tax. The sale of a car and the delivery to the taxpayer’s premises did not constitute two distinct supplies for VAT purposes. All the circumstances must be considered, and looking at the transaction as a matter of commercial reality there was a single contract for a delivered car, and it was artificial to split the various parts of the transaction into different supplies for VAT purposes. The service of delivering the car was incidental or ancillary to the supply of the car, and it was irrelevant that the taxpayer could have made a different arrangement for delivery of the car by a transporter or by collecting the car. (Lord Hope) ‘This seems to me to be a good example of a transaction which involves the supply of both goods and services, which the court had in mind when it referred in [the Card Case] to a service which did not constitute for customers ‘an aim in itself, but a means of better enjoying the principal service supplies.” Referring to Madgett, Lord Hope said the relationship between the supplies of travel services and accommodation must be disproportionate if the transaction was to be regarded as comprising one supply. ‘ . . no single factor will provide the sole test as to whether the supply in question is a distinct and independent supply or is incidental or ancillary to another principal supply.’
Lord Hope
Gazette 14-Jul-1999, Times 05-Jul-1999, [1999] UKHL 3, [1999] 1 WLR 1376, [1999] AC 1376
Value Added Tax (Input Tax) Order 1992 (1992 No 3222)
England and Wales
Cited – Commissioners of Customs and Excise v Madgett and Baldwin (trading as Howden Court Hotel) ECJ 22-Oct-1998
The court considered the criteria for determining whether the provision to guests by a hotelier of travel services (and in particular transport to and from the hotel and excursions) constituted supply which was ancillary to the supply of . .
Appeal from – Commissioners of Customs and Excise v British Telecommunications Plc CA 18-Mar-1998
The delivery of a quantity of cars is a separate supply from the purchases of the cars themselves and the VAT on the delivery charges is reclaimable as an input. . .
At first instance – Regina v Her Majesty’s Treasury ex parte British Telecommunications Plc Admn 14-Nov-1996
. .
Cited – Commissioners of Customs and Excise v Plantiflor Limited HL 25-Jul-2002
The company charged no VAT on its postage and packaging charged to mail order customers. The company had described it as an advance of the sums to be charged by Parcelforce.
Held: There was no separate contract between the end customer and . .
Cited – College of Estate Management v Commissioners of Customs and Excise ChD 13-Nov-2003
The college appealed a finding that the supply of course manuals to its students was part of its exempt rather than zero-rated supply.
Held: ‘Once it is decided that there is a single supply from an economic view which should not be . .
Cited – College of Estate Management v Commissioners of Customs and Excise CA 11-Aug-2004
When offering courses to distance learning students, the College offered materials for the courses. As part of the course this supply would be exempt, as books, the supply would be zero-rated, but the taxpayer would be able to reclaim its VAT . .
Cited – Beynon and Partners v Customs and Excise HL 25-Nov-2004
The House asked whether the personal administration of a drug such as a vaccine by an NHS doctor to a patient is a taxable supply for the purposes of value added tax. The provision of medical care in the exercise of the medical and paramedical . .
Cited – College of Estate Management v Customs and Excise HL 20-Oct-2005
The college supplied educational services by distance learning. The commissioner sought to argue that printe daterials supplied with the course were ancillary and did not have the same exemption form VAT.
Held: The supplies did benefit from . .
Lists of cited by and citing cases may be incomplete.
Updated: 28 July 2022; Ref: scu.158986
ECJ Advocate General’s Opinion – Taxation – VAT – Exemption of acquisitions of goods- Article 140 a) and b) of Directive 2006/112 / EC – Exemption of imports of goods – Article 143 a) of Directive 2006 / 112 / – Applicability of exemptions dentures whose supply is exempt pursuant to Article 132, paragraph 1, e) of Directive 2006/112 / EC – Deduction of input tax – Article 17, paragraph 2 a) as amended by Article 28f 1 of the Sixth Directive 77/388 / – Direct effect – Right to deduct input tax in case of transactions exempted by the law national in violation of EU law
Juliane Kokott AG
C-144/13, [2014] EUECJ C-144/13 – O, ECLI: EU: C: 2014, 2163
European
Opinion – VDP Dental Laboratory v Staatssecretaris van Financien ECJ 26-Feb-2015
Reference for a preliminary ruling – Value added tax – Deductions – Exemptions – Supplies of dental prostheses . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.536494
The claimant investment Trust companies sought repayment of taxes paid in error by way of restitution.
Held: The range of the the law of restitution to recover any tax unlawfully exacted was to be be restricted to those situations where the sums paid to the public authority were so paid in fulfilment of an apparent statutory requirement to do so.
Henderson J
[2013] EWHC 665 (Ch), [2013] WLR(D) 125
Value Added Tax Act 1994 80(7)
England and Wales
Principle Judgment – Investment Trust Companies v HM Revenue and Customs ChD 2-Mar-2012
The claimant had properly accounted for VAT on its transactions for many years, but a decision of the European court had latterly ruled that the services were exempt. The claimant sought restitution from HMRC, who responded by arguing that . .
AT ChD (2) – Investment Trust Companies v Revenue and Customs CA 12-Feb-2015
The claimants having sought repayment of overpaid VAT, they now complained of sums deducted by the Revenue.
Held: The Court allowed the Lead Claimants’ appeal, to the extent of the notional pounds 75 paid in respect of dead periods, and . .
At ChD (2) – Revenue and Customs v The Investment Trust Companies SC 11-Apr-2017
Certain investment trust companies (ITCs) sought refunds of VAT paid on the supply of investment management services. EU law however clarified that they were not due. Refunds were restricted by the Commissioners both as to the amounts and limitation . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.472042
VAT – retail schemes – Regulations 67-75 Value Added Tax Regulations 1995 – appellant incorrectly used Apportionment Scheme 1 – appellant ineligible to use Apportionment Scheme 1 – assessment of output tax on basis of Apportionment Scheme 1 – appeal allowed in principle
[2012] UKFTT 169 (TC)
England and Wales
Updated: 26 July 2022; Ref: scu.462633
Opinion – Reimbursement of VAT collected in breach of EU law – Interest – Simple interest – Compound interest – Procedural autonomy of the Member States – Principle of effectiveness – Principle of equivalence
Trstenjak AG
C-591/10, [2012] EUECJ C-591/10 – O
European
Opinion – Littlewoods Retail Ltd and Others v Her Majesty’s Commissioners of Revenue and Customs ECJ 19-Jul-2012
(Grand Chamber) Second and Sixth VAT Directives – Input tax – Refund of excess – Payment of interest – Procedures
The court considered whether on repayment to a taxpayer of wrongly imposed VAT, the interest returned with the repayment should be . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.463183
Matter referred to European Court
[2011] UKFTT 68 (TC)
England and Wales
Reference – JP Morgan Fleming Claverhouse Investment Trust and Another v HM Revenue and Customs (Taxation) ECJ 1-Mar-2007
ECJ Value added tax – Exemption of the management of special investment funds Concept of ‘special investment funds as defined by Member States’ discretion limits – Closed-ended investment funds. . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.442781
The court was asked whether the VAT treatment of mechanised cash bingo breaches the principle of fiscal neutrality: and the core issue on the appeal is whether the burden lay on Rank to adduce evidence to prove not only that there was a difference in VAT treatment between similar (and apparently competing) products but also that the difference did as a matter of fact actually affect competition.
Norris J approved the result that the machines were not gaming machines: ‘The argument proceeded on the footing that the element of chance had to be provided by ‘the machine’ and the problem lay in identifying ‘the machine’. The ‘element of chance’ is the determining event which governs the outcome of the game being played on the machine which has the slot in it and which the player is playing. Where the determining event is a random number there is I think no difference in principle between a human being selecting a numbered ball, an electric ball shuffler (such as that used in the National Lottery) producing a numbered ball or a microprocessor emitting a stream of numbers. It is a question of fact in each case whether that determining event is produced by ‘the machine’, and fine distinctions might have to be drawn. In my judgment the principle by reference to which those judgments have to be made is whether the outcome of the game may sensibly be regarded as determined by an external event which the machine records or is produced by the machine itself. Like the tribunal I would hold that the random generation of a number in a separate unit which serves various player terminals (which may themselves be running different games) is properly regarded as an external event and not one produced by the machine that the player is playing. Like the tribunal I do not think it is possible to elaborate further.’
Norris J
[2009] EWHC 1244 (Ch), [2009] BVC 598, [2009] STC 2304, [2009] STI 1884
England and Wales
At VDT(1) – The Rank Group Plc v Revenue and Customs VDT 27-May-2008
VDT EXEMPT SUPPLIES – Gaming – Mechanised cash bingo under Gaming Act 1968 s.14 excluded from exemption – Similar supplies under s.21 exempt – Whether principle of fiscal neutrality infringed – Same company . .
At VDT (2) – Rank Group Ltd v Revenue and Customs VDT 19-Aug-2008
VDT COMMUNITY LAW – Fiscal neutrality – Exemption – Gaming – Provision of gaming machines excluded from exemption – Similar supplies under Part III of Gaming Act 1968 exempt – Whether principle of fiscal . .
At ChD – The Rank Group Plc v Revenue and Customs FTTTx 11-Dec-2009
FTTTx Community Law – Fiscal neutrality – Exemption – Exclusion of provision of ‘gaming machines’ from exemption – Whether taxed machines similar to exempt machines – Relevance of regulatory regime – TNT [2009] . .
At ChD – Commissioners for Her Majesty’s Revenue and Customs v Rank Group plc C-260/10 ECJ 10-Nov-2011
ECJ Taxation – Sixth VAT Directive – Exemptions – Article 13B(f) – Betting, lotteries and other forms of gambling – Principle of fiscal neutrality – Mechanised cash bingo – Slot machines – Administrative practice . .
At ChD – Commissioners for Her Majesty’s Revenue and Customs v Rank Group plc C-259/10 ECJ 10-Nov-2011
ECJ Taxation – Sixth VAT Directive – Exemptions – Article 13B(f) – Betting, lotteries and other forms of gambling – Principle of fiscal neutrality – Mechanised cash bingo – Slot machines – Administrative practice . .
At ChD – HMRC v The Rank Group Plc UTTC 4-Oct-2012
Taxation – whether gaming or betting and the different VAT Treatment of newer gaming machines. . .
At ChD – HM Revenue and Customs v The Rank Group Plc CA 30-Oct-2013
The tax payer had sought repayment of sums of VAT charged to a particular form of gaming, saying that the rules infringed the principles of fiscal neutrality under European law. HMRC now appealed against a finding that the machines were exempt from . .
At ChD – Revenue and Customs v The Rank Group Plc SC 8-Jul-2015
The question raised by this appeal is whether, during the period 1 October 2002 to 5 December 2005, the takings on a particular category of gaming machines operated by the appellants were subject to VAT. The answer depends on whether the takings . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.346759
VDT VALUE ADDED TAX – Input tax – Whether sums paid by Director of company defending a claim against him in his private capacity are properly incurred for the purposes of the business – s.24 Value Added Tax Act 1994 – Appeal dismissed
[2009] UKVAT V20973
Updated: 26 July 2022; Ref: scu.346561
VDT Deregistration – claim for backdating under Para.13(1) of the First Schedule to the 1994 Act to time turnover fell below the deregistration limit and not to the making of the application to deregister – claim that VAT charged and paid to Customs during the period before deregistration but while turnover was below the deregistration limit should be refunded – appeal dismissed.
[2009] UKVAT V20972
Updated: 26 July 2022; Ref: scu.346557