VDT DEFAULT SURCHARGE – whether reasonable excuse – no – appeal dismissed
Citations:
[2009] UKVAT V20975
Links:
VAT
Updated: 26 July 2022; Ref: scu.346556
VDT VALUE ADDED TAX – Appeal with respect to Notice of Requirement for security for tax – Employee of appellant company previously sole proprietor of failed business – Whether reasonable for Commissioners to take account of fact that that employee convicted of making taxable supplies without providing required security – Commissioners’ decision reasonable – Appeal dismissed
[2009] UKVAT V20961
Updated: 26 July 2022; Ref: scu.346535
VDT COSTS – Application for Indemnity costs – Appeal conceded at late stage – Whether Customs’ resistance to appeal until very late stage wholly unreasonable – Held not so unreasonable – Direction for costs on standard basis – Trib Rules 1986, r.29(1)
[2009] UKVAT V20960
Updated: 26 July 2022; Ref: scu.346543
Appeal against default surcharge.
[2009] UKVAT V20970
Updated: 26 July 2022; Ref: scu.346560
VDT VAT – Principal VAT Directive of 28 November 2006 article 132.1 (b) and (c) – whether services of collecting, testing, processing and storage of umbilical cord blood stem cells for future therapeutic use exempt from VAT in whole or in part – reference to European Court of Justice
[2009] UKVAT V20963
Updated: 26 July 2022; Ref: scu.346536
VDT VALUE ADDED TAX – Registration – Whether input tax incurred six months and two days prior to registration reclaimable – Rule 111(2)(d) of Value Added Tax Regulations 1995 applicable – Appeal dismissed
[2009] UKVAT V20962
Value Added Tax Regulations 1995 111(2)(d)
Updated: 26 July 2022; Ref: scu.346537
VDT VAT – deduction of input tax – whether input tax creditable in respect of supplies for which no invoices held – whether input tax claimed related to supplies to be used in the Appellant’s business
VAT – cancellation of registration – jurisdiction of tribunal – conclusion: deregistration was warranted
[2009] UKVAT V20982
Updated: 26 July 2022; Ref: scu.346551
VDT VAT – INPUT TAX – Appellant incurred legal expenses in respect of a dispute with his former partners – Appellant claimed VAT repayment on those supplies – were the supplies made to him in his capacity as a partner for the purposes of the partnership business – no – supplies made to him in a personal capacity – Appeal dismissed
[2009] UKVAT V20969
Updated: 26 July 2022; Ref: scu.346552
VDT Value Added Tax – Alleged under-declaration of turnover of fish and chip ‘take-away’ – Application of the ascertained turn-over of one short period to calculate the assumed true turn-over over several years – Burden of proof – Appeal dismissed
[2009] UKVAT V20983
Updated: 26 July 2022; Ref: scu.346558
VDT Value Added Tax – matter to be determined as preliminary issue – failure of taxable person to register – assessment for final return period of 34 months – whether illegal as contrary to Article 252 Principal VAT Directive – Commissioners’ powers to require return for period exceeding 12 months under Article 273 Principal VAT Directive – whether decision in Bjellica v CCE per incuriam – whether assessment invalid – regulation 25(1) and (4) VAT Regulations 1995 – assessment both legal and valid – appeal dismissed in relation to preliminary matter
Edward Sadler, Chair
[2009] UKVAT V20957, [2009] BVC 2291, [2008] V and DR 439
England and Wales
Updated: 26 July 2022; Ref: scu.346542
VDT Value Added Tax – building works – 5% reduced rate on residential conversions – whether Respondents liable to refund balance where standard rate tax paid – appeal fails – VATA 1994 Section 29A, Schedule 7A, Group 6.
[2009] UKVAT V20964
Updated: 26 July 2022; Ref: scu.346539
VDT COSTS – Application for indemnity costs – Appeal conceded at late stage – Whether Customs’ resistance to appeal hopeless from outset – Held that Customs not so unreasonable as to justify indemnity costs on appeal – Opposition to hardship application for 9 months after clear evidence of hardship provided – Order for indemnity costs for that period – Trib Rules 1986, r.29(1) – Wrong test for hardship applied by Customs – VATA 1994 s.84(3)(b).
[2009] UKVAT V20966
Updated: 26 July 2022; Ref: scu.346544
The court was asked whether Pringles are ‘similar to potato crisps and made from the potato?’ Toulson LJ discussed the need for appellate courts to respect the special knowledge of tribunals: ‘Where a Tribunal has taken into account all relevant factors, and has not been influenced by impermissible factors, a court will only exceptionally entertain a challenge based on the Tribunal’s evaluation of those factors for the reason given by Baroness Hale in AH. The challenge would have to show that the decision was perverse.’
Toulson LJ, Mummery LJ, Jacob LJ
[2009] EWCA Civ 407, [2009] BVC 461, [2009] BTC 5462, [2009] STC 1990, [2009] STI 172
England and Wales
At VDT – Procter and Gamble (Uk) v Revenue and Customs VDT 25-Jun-2007
VDT ZERO-RATING – food – Excepted item 5 of Group 1 of Schedule 8 to the VAT Act 1994 – whether Pringles are similar to potato crisps – yes – whether they are made from the potato, potato flour or potato starch – . .
Appeal from – Procter and Gamble UK v Revenue and Customs (Including Supplemental Judgment) ChD 4-Jul-2008
Whether Regular Pringles are standard-rated as being within the words ‘potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch’ in excepted item 5 of Group 1 of Schedule 8 to . .
Cited – Sugar v The British Broadcasting Commission and Another (No 2) CA 23-Jun-2010
The respondent had had prepared a report as to the balance of its reporting of the Israeli-Palestinian conflict. Earlier proceedings had established that the purposes of the holding of the reporting included jurnalism. The claimant now appealed . .
Cited – 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.346217
The respondent bought international phone cards and resold them in his shop for a small profit. The court was asked as to how they were to be treated for VAT purposes. The Tribunal had held that some were supplied in other EU member states and outside and were thus not all subject to VAT.
Lewison J
[2009] EWHC 1077 (Ch), [2009] 3 CMLR 24, [2009] BTC 5476, [2009] STC 1729, [2009] BVC 475, [2009] STI 1790
England and Wales
Updated: 26 July 2022; Ref: scu.346244
The taxpayers appealed against a finding that their business did not fall within the exemption from VAT of insurance brokers. They introduced possible customers to insurance companies via web-sites.
Held: The company’s activities were in the nature of insurance brokers, and the business was within the scope of the exemption.
Sir Edward Evans-Lombe
[2009] EWHC 999 (Ch), Times 05-Jun-2009
Value Added Tax Act 1994, Sixth Council Directive 77/388/EEC on the harmonisation of the laws of the member states relating to turnover taxes (OJ June 13, 1977 L145/1)
England and Wales
Updated: 26 July 2022; Ref: scu.344034
VAT – denial of input tax – no economic activity- no valid output VAT invoices- no proof of input tax- appeal dismissed
[2009] UKVAT V20942
England and Wales
Updated: 26 July 2022; Ref: scu.301731
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.
[2007] ECR I-5517, [2007] EUECJ C-363/05
European
Reference – JP Morgan Fleming, Claverhouse Investment Trust Plc and Another v Revenue and Customs FTTTx 10-Sep-2005
Matter referred to European Court . .
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: 26 July 2022; Ref: scu.249897
Europa (Taxation) Thirteenth VAT Directive Article 2(2) GATS Most-favoured-nation clause Interpretation of secondary Community law in the light of international agreements concluded by the Community
C-335/05, [2007] EUECJ C-335/05, ECLI:EU:C:2007:321
European
Cited – Nuclear Decommissioning Authority v Energysolutions EU Ltd (Now Called ATK Energy EU Ltd) SC 11-Apr-2017
This is an appeal on preliminary points of European Union and domestic law regarding the circumstances in which damages may be recoverable for failure to comply with the requirements of the Public Procurement Directive (Parliament and Council . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.248899
reasonable excuse appeal
[2007] UKVAT V20434
England and Wales
Updated: 26 July 2022; Ref: scu.262489
ECJ Opinion – Sixth VAT Directive – Exemptions within the territory of the country – Supplies of dental prostheses by dentists and dental technicians – Intra-Community supply – Deduction of input tax
Kokott AG
C-401/05, [2006] EUECJ C-401/05
European
Updated: 26 July 2022; Ref: scu.247395
ECJ Sixth VAT Directive – Special scheme for travel agents and tour operators – Article 26(1) – Scope – Package comprising travel to the host State and/or the stay in that State and language tuition – Principal service and ancillary service – Definition – Directive 90/314/EEC on package travel, package holidays and package tours.
C-200/04, [2005] EUECJ C-200/04
European
Updated: 26 July 2022; Ref: scu.231084
Appeal against dismissal of the Appellant’s appeal from the decision of the Commissioners of Customs and Excise to refuse to repay to the Appellant input tax on three new Aston Martin motor cars out of a batch of thirteen such cars purchased by the Appellant from a supplier in 1989 and 1990 upon which purchases he had paid Value Added Tax as an input.
The Hon Mr Justice Evans-Lombe
[2005] EWHC 232 (Ch), [2005] BTC 5215, [2005] STC 707, [2005] Eu LR 735, [2005] BVC 246
England and Wales
Appeal from – Fleming (T/A Bodycraft) v Customs and Excise VDT 23-Apr-2004
VDT INPUT TAX – whether claim made in 2000 for input tax for 1989 and 1990 for which no tax invoice was issued was part of a claim made in 1993 – no – whether the 2000 claim was prevented by the 3 year cap . .
Appeal from – Fleming (T/A Bodycraft) v Revenue and Customs CA 15-Feb-2006
The claimant sought repayment of VAT. The commissioners responded that there ws a three year cut off for reclaims.
Held: The introduction of the three year limit with no transitional provisions was in breach of Community law. . .
At ChD – Fleming (T/A Bodycraft) v Revenue and Customs HL 23-Jan-2008
The transitional rules introducing time limits for failing to deduct VAT inputs made insufficient allowance for the decisions in Marks and Spencer and Grundig.
Held: Lord Hope said: ‘To be compatible with EU law, taxpayers were entitled to be . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.223287
VAT – ZERO RATING – Exports – rally car prepared for East African Safari Rally – whether exported to Kenya – no – whether supplied to purchaser in UK – yes – supply held to be standard-rated – appeal dismissed
[2005] UKVAT V19048
England and Wales
Updated: 26 July 2022; Ref: scu.225142
PENALTY – Evasion – S.60 and S.61 of Value Added Tax Act 1994 – Appellant director of clothing manufacturer – Whether invoices from another company amounting to half of Appellant’s company’s output genuine – Appeal dismissed
[2005] UKVAT V19045
England and Wales
Updated: 26 July 2022; Ref: scu.225138
Practice – Standover Application – Input Tax – Alleged carousel – Opposed application by Customs to standover for ECJ in Bond House Systems – Severe financial impact on Appellant – Guarantee required for provisional repayment – Preliminary issue on facts already directed – Time estimated 1 -2 days – Stand over refused
[2005] UKVAT V19033
England and Wales
Updated: 26 July 2022; Ref: scu.225140
DEFAULT SURCHARGE – Legality – Reasonable excuse – Appellant paid VAT through BACS system one day late – Payment received by Commissioners late – Whether default surcharge an excessive penalty for such a short delay – No – Appellant claimed that because computerized communication has broken down on correct date for payment it had waited until the next day and then activated the BACS payment – Whether reasonable excuse – No evidence
[2005] UKVAT V19026
England and Wales
Updated: 26 July 2022; Ref: scu.225141
VAT – EXEMPT SUPPLIES – health and welfare – welfare services for care or protection of children – whether supplies of the services of carers to private welfare institutions exempt – whether article 13A(1)(g) of EC Sixth Directive so implemented in VAT Act 1994 as to exempt supplies made by agency having regard to meaning of ‘state-regulated’ in item 9(b) of group 7 of Sch 9 of VATA – yes – appeal allowed
[2005] UKVAT V19041
England and Wales
Updated: 26 July 2022; Ref: scu.225145
SINGLE OR MULTIPLE SUPPLY – CD book as part of a series on classic composers comprising a CD and 12 pages of written material and illustrations – principal supply is that of the CD – appeal dismissed
[2005] UKVAT V19034
England and Wales
See Also – Regina (International Masters Publishers Ltd) v Revenue and Customs Commissioners QBD 19-Jan-2006
The taxpayer sold book with associated CDs. The respondent refused to apply the ESC 37 concession. There was doubt its capacity to do so, but the taxpayer first lodged an appeal. It now sought leave to apply for judicial review of the decision out . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.225143
VAT – Interest on input tax claim – whether payable under section 78 of VAT Act 1994 when supplement paid under section 79 – no – whether section 85 agreement reached concerning interest – no – appeal dismissed.
[2005] UKVAT V19013
England and Wales
Updated: 26 July 2022; Ref: scu.225146
reasonable excuse appeal
[2005] UKVAT V19025
England and Wales
Updated: 26 July 2022; Ref: scu.225149
ECJ Judgment – Sixth VAT Directive – Article 26a – Special arrangements applicable to second-hand goods – The term ‘second-hand goods’ – Horse sold on after training
C-320/02, [2004] EUECJ C-320/02, [2006] BVC 82, [2004] STI 989, [2004] ECR I-3509, [2004] CEC 248, [2006] BTC 5013, [2004] 2 CMLR 56, [2004] STC 1041, [2004] All ER (EC) 870
European
Cited – Revenue and Customs v Pendragon Plc and Others SC 10-Jun-2015
‘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 . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.195734
VDT INPUT TAX – whether claim made in 2000 for input tax for 1989 and 1990 for which no tax invoice was issued was part of a claim made in 1993 – no – whether the 2000 claim was prevented by the 3 year cap introduced by regulation 29(1A) – no, because there was no transitional provision – however, refusal of claim 10 years after the input tax was incurred was reasonable – appeal dismissed
Avery Jones Chairman
[2004] UKVAT V18579, [2004] STI 1560, [2004] V and DR 172
England and Wales
Appeal from – Fleming T/A Bodycraft v Commisioners of Customs and Excise ChD 25-Feb-2005
Appeal against dismissal of the Appellant’s appeal from the decision of the Commissioners of Customs and Excise to refuse to repay to the Appellant input tax on three new Aston Martin motor cars out of a batch of thirteen such cars purchased by the . .
At Tribunal – Fleming (T/A Bodycraft) v Revenue and Customs CA 15-Feb-2006
The claimant sought repayment of VAT. The commissioners responded that there ws a three year cut off for reclaims.
Held: The introduction of the three year limit with no transitional provisions was in breach of Community law. . .
At VDT – Fleming (T/A Bodycraft) v Revenue and Customs HL 23-Jan-2008
The transitional rules introducing time limits for failing to deduct VAT inputs made insufficient allowance for the decisions in Marks and Spencer and Grundig.
Held: Lord Hope said: ‘To be compatible with EU law, taxpayers were entitled to be . .
Lists of cited by and citing cases may be incomplete.
Updated: 26 July 2022; Ref: scu.199088
Whether fitted furniture is part of a building is a question of fact.
Ind Summary 22-Mar-1993
England and Wales
Updated: 25 July 2022; Ref: scu.79320
The court considered the VAT treatment general business overheads of a vehicle financing company, and in particular the ‘partial exemption special method’ (‘PESM’) agreed with HMRC for the valuation of the proportion of residual input tax attributable to HP transactions, and whether any of the residual input tax paid by VWFS in respect of such general overheads (so far as apportioned to the retail sector) is deductible against the output tax paid on the taxable supply of vehicles to customers.
Held: A reference was necessary to refer the matter to the European Court of Justice.
Lord Neuberger, President, Lord Kerr, Lord Reed, Lord Carnwath, Lord Gill
[2017] UKSC 26, [2017] STI 1039, [2017] STC 824, [2017] BVC 15, UKSC 2015/0224
Bailii, Bailii Summary, SC, SC Summary, SC Summary Video
England and Wales
At FTTTx – Volkswagen Financial Services (UK) Ltd v Revenue and Customs FTTTx 18-Aug-2011
VAT – partial exemption special method – hire purchase transactions – taxable supplies of goods and exempt supplies of credit – whether a methodology attributing part of residual input tax to taxable supplies of goods is fair and reasonable – . .
At UTTC – HM Revenue and Customs v Volkswagen Financial Services (UK) Ltd UTTC 12-Nov-2012
UTTC VAT – partial exemption special method – hire purchase transactions – taxable supplies of motor vehicles and exempt supplies of credit – whether residual cost inputs have a direct and immediate link with and . .
Appeal from – Volkswagen Financial Services (UK) Ltd v HM Revenue and Customs CA 28-Jul-2015
The parties disputed the recoverability of VAT on the general expenses of the appellant which operated a car financing company. In particular: ‘whether any of the residual input tax paid by VWFS in respect of the general overheads of the business is . .
Cited – Pegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Cited – Banbury Visionplus Ltd v HM Revenue and Customs ChD 9-May-2006
Appeal against termination of special exemption method.
Held: The taxpayer’s appeal was dismissed. The VAT tribunal’s jurisdiction was unlimited. No limitation was implied by the wording of the section. The tribunal’s discretion had only to be . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 July 2022; Ref: scu.581353
The parties disputed the recoverability of VAT on the general expenses of the appellant which operated a car financing company. In particular: ‘whether any of the residual input tax paid by VWFS in respect of the general overheads of the business is deductible against the output tax paid on the taxable supply of vehicles to customers. In short, HMRC contend that the correct tax treatment of the residual input tax on overheads in this case is that the overheads are all attributable to the exempt supplies of finance and the input tax is therefore irrecoverable.’
Held: The input tax was recoverable.
Patten LJ explained: ‘The First-tier Tribunal proceeded on the basis that the only dispute about methodology was whether any part of the residual input tax was attributable to and could be set-off against the taxable supplies of vehicles made in the retail sector of VWFS’s business. But HMRC contend that they did challenge the apportionment formula contained in the proposed PESM on wider grounds and that a lower figure than 50% should be attributed to the taxable supplies of vehicles as part of the hire purchase contracts in terms of the use made of the allocated inputs.’
Patten, Sharp, King LJJ
[2015] EWCA Civ 832, [2015] STI 2533, [2016] STC 417, [2015] BVC 32
England and Wales
At FTTTx – Volkswagen Financial Services (UK) Ltd v Revenue and Customs FTTTx 18-Aug-2011
VAT – partial exemption special method – hire purchase transactions – taxable supplies of goods and exempt supplies of credit – whether a methodology attributing part of residual input tax to taxable supplies of goods is fair and reasonable – . .
Appeal from – HM Revenue and Customs v Volkswagen Financial Services (UK) Ltd UTTC 12-Nov-2012
UTTC VAT – partial exemption special method – hire purchase transactions – taxable supplies of motor vehicles and exempt supplies of credit – whether residual cost inputs have a direct and immediate link with and . .
Appeal from – Volkswagen Financial Services (UK) Ltd v Revenue and Customs SC 5-Apr-2017
The court considered the VAT treatment general business overheads of a vehicle financing company, and in particular the ‘partial exemption special method’ (‘PESM’) agreed with HMRC for the valuation of the proportion of residual input tax . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 July 2022; Ref: scu.550647
UTTC VALUE ADDED TAX – exemption – sports services – partnership transferred golf club business to non-profit making companies and leased golf course to companies for turnover rent – abuse of law – jurisdiction of Upper Tribunal in abuse of law appeals – burden of proof in abuse of law cases – whether arrangements an abuse of law – yes – appeal dismissed PROCEDURE – application for permission to rely on new ground of appeal not argued in FTT – application refused COSTS – Sheldon practice – whether case fell within exceptions to practice – whether HMRC entitled to add to list of exceptions – whether FTT wrong to reject Appellants’ criticisms of Respondents’ conduct of case when considering costs – appeal dismissed
[2015] UKUT 405 (TCC)
England and Wales
Updated: 25 July 2022; Ref: scu.553190
FTTTx VALUE ADDED TAX – late registration for VAT – appeal against penalty of andpound;7204 – tribunal found this excessively harsh – factors in mitigation – proper penalty andpound;400 – appeal allowed in part.
[2014] UKFTT 634 (TC)
England and Wales
Updated: 25 July 2022; Ref: scu.533697
FTTTx VALUE ADDED TAX – assessments – best judgment – examination of till records – programming of till – whether transactions fully reflected in VAT returns – evidence showing omission of transactions from main records – assessments confirmed – penalties under s 60 VATA 1994 and Sch 24 FA 2007 also confirmed – appeals dismissed
John Clark J
[2014] UKFTT 632 (TC)
England and Wales
Updated: 25 July 2022; Ref: scu.533711
UTTC VAT – partial exemption special method – hire purchase transactions – taxable supplies of motor vehicles and exempt supplies of credit – whether residual cost inputs have a direct and immediate link with and are cost components of taxable supplies of motor vehicles – whether a methodology which attributes 50% of residual input tax to taxable supplies is fair and reasonable.
Vos J, Herrington HHJ
[2012] UKUT 394 (TCC), [2015] CN 1332
England and Wales
Appeal from – Volkswagen Financial Services (UK) Ltd v Revenue and Customs FTTTx 18-Aug-2011
VAT – partial exemption special method – hire purchase transactions – taxable supplies of goods and exempt supplies of credit – whether a methodology attributing part of residual input tax to taxable supplies of goods is fair and reasonable – . .
Appeal from – Volkswagen Financial Services (UK) Ltd v HM Revenue and Customs CA 28-Jul-2015
The parties disputed the recoverability of VAT on the general expenses of the appellant which operated a car financing company. In particular: ‘whether any of the residual input tax paid by VWFS in respect of the general overheads of the business is . .
At UTTC – Volkswagen Financial Services (UK) Ltd v Revenue and Customs SC 5-Apr-2017
The court considered the VAT treatment general business overheads of a vehicle financing company, and in particular the ‘partial exemption special method’ (‘PESM’) agreed with HMRC for the valuation of the proportion of residual input tax . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 July 2022; Ref: scu.466707
VAT – partial exemption special method – hire purchase transactions – taxable supplies of goods and exempt supplies of credit – whether a methodology attributing part of residual input tax to taxable supplies of goods is fair and reasonable – whether residual input tax is partly a cost component of taxable supplies of goods
[2011] UKFTT 556 (TC), [2012] SFTD 190
England and Wales
Appeal from – HM Revenue and Customs v Volkswagen Financial Services (UK) Ltd UTTC 12-Nov-2012
UTTC VAT – partial exemption special method – hire purchase transactions – taxable supplies of motor vehicles and exempt supplies of credit – whether residual cost inputs have a direct and immediate link with and . .
At FTTTx – Volkswagen Financial Services (UK) Ltd v HM Revenue and Customs CA 28-Jul-2015
The parties disputed the recoverability of VAT on the general expenses of the appellant which operated a car financing company. In particular: ‘whether any of the residual input tax paid by VWFS in respect of the general overheads of the business is . .
At FTTTx – Volkswagen Financial Services (UK) Ltd v Revenue and Customs SC 5-Apr-2017
The court considered the VAT treatment general business overheads of a vehicle financing company, and in particular the ‘partial exemption special method’ (‘PESM’) agreed with HMRC for the valuation of the proportion of residual input tax . .
Lists of cited by and citing cases may be incomplete.
Updated: 25 July 2022; Ref: scu.449526
ECJ Sixth VAT Directive – Article 8(1)(a) and (b), Article 28a(1)(a), Article 28b(A)(1) and the first subparagraph of Article 28cA)(a) – Exemption of supplies of goods dispatched or transported within the European Union – Successive supplies of the same goods giving rise to a single intra-Community dispatch or transport.
C-430/09, [2010] EUECJ C-430/09
European
Updated: 25 July 2022; Ref: scu.427322
VDT Voluntary Registration: Non-licensed cafe – whether TOGC – various grounds – principal reason no liquor licence; new business more in keeping with summer trade. Appeal Allowed.
[2009] UKFTT 381 (TC)
England and Wales
Updated: 25 July 2022; Ref: scu.409136
FTTTx VAT – REPAYMENT CLAIM – Voluntary disclosure to recover output tax on supplies of golfing tuition – the proportion of the Appellant’s turnover attributed to tuition supplies in the voluntary disclosure was considerably higher than that in an earlier claim in respect of the same supplies – HMRC limited the repayment claim to the amount represented by the proportion of tuition supplies declared in the earlier claim – No satisfactory explanation for the variation in proportions – No evidence to substantiate the figures in the voluntary disclosure – No rationale provided for the computation – Appeal dismissed.
[2010] UKFTT 206 (TC)
England and Wales
Updated: 25 July 2022; Ref: scu.422230
Arnold J
[2009] EWHC 1596 (Ch), [2009] BVC 645, [2009] STI 2091, [2009] STC 2193
England and Wales
Updated: 25 July 2022; Ref: scu.347454
Jacob J
[2003] EWHC 1822 (Ch), [2003] STC 1072, [2003] STI 1394
England and Wales
Updated: 24 July 2022; Ref: scu.342137
Reasonable excuse appeal
[2009] UKVAT V20940
England and Wales
Updated: 24 July 2022; Ref: scu.301710
The claimant company, in liquidation, claimed large sums from the first defendant as a director who wrongfully and fraudulently caused it to incur a liability to HMRC for wrongfully claimed input tax on various liquor purchases.
Held: Mann J said: ‘It was no part of the liquidator’s case that there was no trade at all in beer and wine. It was not necessarily part of her case that there was no trade at all with the missing traders. Her case was, whatever trade there may or may not have been, it was not the trade reflected in the disputed input tax claims. There are various possibilities, including different trade with the missing traders at a different level and not involving VAT; trading with other completely different entities, free of VAT, for which the documentary trade with the missing traders is a cover; or no trade at all. There are doubtless other possibilities. The liquidator does not seek to prove any of them. She is entitled to adopt that stance of saying that the purported trade with the missing traders did not take place as documented, and does not have to go further and work out what was actually going on in Payless. As I have observed, in many cases the proof of a fraud will, in practice, require it to be demonstrated what the context of the fraud was – otherwise the fraud is less plausible – but it is not an absolute necessity and in the present case the evidence that the purported trades were not genuine is sufficiently strong that the inability to complete the actual trading picture does not detract from the inferences that are to be drawn from the primary facts as I have found them to be.’
Mann J
[2011] EWHC 2112 (Ch)
England and Wales
Cited – Revenue and Customs v SED Essex Ltd ChD 14-Jun-2013
Liquidator confirmed despite VAT challege
The Revenue sought the winding up of the company for non-payment of substantial arrears of VAT. The revenue had declined to allow VAT input claims. The company said that the petition was wrong since the debt was genuinely disputed.
Held: The . .
Lists of cited by and citing cases may be incomplete.
Updated: 24 July 2022; Ref: scu.442578
SUPPLY – Nature of supply by franchisor of children’s activity play groups in return for payment by parent – Whether several supplies of goods or single supply of membership – Payment of fee precondition to admittance by franchisor – Whether supply relates to admission
[2006] UKVAT V19530
England and Wales
Updated: 24 July 2022; Ref: scu.241237
reasonable excuse appeal
[2006] UKVAT V19621
England and Wales
Updated: 24 July 2022; Ref: scu.242804
STRIKE-OUT – whether appealable decision when Customs state that they will not repay input tax while investigations are made – no – appeal struck out
[2006] UKVAT V19754
England and Wales
Updated: 24 July 2022; Ref: scu.249791
VALUE ADDED TAX – partial exemption – opticians’ stores – special methods based on floor area agreed in 1997 and 1998 – special methods terminated by the Respondents in 2004 so that standard method applied – whether jurisdiction of the Tribunal is full or limited – limited – whether decision to terminate special methods was a reasonable decision – yes – if jurisdiction was full whether disputed decision secured a fair and reasonable attribution of input tax – yes – appeal dismissed – VATA 1994 Ss 24 – 26; VAT Regulations 1995 SI 1995 No. 2518 regs 101 and 102
[2005] UKVAT V19266
England and Wales
Appeal from – Banbury Visionplus Ltd v HM Revenue and Customs ChD 9-May-2006
Appeal against termination of special exemption method.
Held: The taxpayer’s appeal was dismissed. The VAT tribunal’s jurisdiction was unlimited. No limitation was implied by the wording of the section. The tribunal’s discretion had only to be . .
Lists of cited by and citing cases may be incomplete.
Updated: 24 July 2022; Ref: scu.237989
reasonable excuse appeal
[2005] UKVAT V19029
England and Wales
Updated: 24 July 2022; Ref: scu.225148
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no objective standard against which an assessment, necessarily an estimate, could be made. If the officer had done his honest best, the assessment stood, but if he had not done that, the assessment would be treated as not having been made. The tribunal had erred in the test it applied.There was no finding of the absence of an honest and genuine attempt to get it right and give a reasoned assessment. The appeal failed.
The Court clarified the explanation of ‘best judgment in Rahman: ‘Another phrase (used by Woolf J in Van Boeckel) referred to the obligation of the commissioners ‘fairly (to) consider all material placed before them’. As a general proposition that is uncontroversial. However, it should not be seen as providing a separate and sufficient test of the invalidity of the assessment, not as justifying lengthy cross-examination to establish whether the relevant officers have in fact looked at all the available material. Even the term ‘wholly unreasonable’ (also used in Van Boeckel) may be misleading if it is treated as a separate test, rather than as simply an indication that there has been no ‘honest and genuine attempt’ to make a reasoned assessment.’
and: ‘The Tribunal should remember that its primary task is to find the correct amount of tax, so far as possible on the material properly available to it, the burden resting on the taxpayer. In all but very exceptional cases, that should be the focus of the hearing’
Lord Justice Chadwick Lord Justice Waller Lord Justice Carnwath
[2004] EWCA Civ 1015, Times 02-Aug-2004, [2004] STC 1509
England and Wales
Cited – Rahman v Commissioners of Customs and Excise CA 20-Dec-2002
The taxpayer appealed aganst rejection of his objection to an assessment to VAT . .
Cited – Rahman T/A Khayam Restaurant v Commissioner of Customs and Excise Admn 11-Jun-1998
The court described the existing practice for a tribunal to look at a challenge to an assessment to VAT which was that the Tribunal should adopt a ‘two stage approach’: ‘ the practice is to consider these cases in two stages: (1) consideration . .
Appeal from – Commissioners of H M Customs and Excise v Pegasus Birds Limited ChD 7-Nov-2003
The Commissioners appealed from a decision of the Vat and Duties Tribunal . .
Cited – Argosy Co v Inland Revenue Commissioners PC 8-Feb-1971
(Guyana) The word ‘best’ when used to refer to the judgment of a tax officer making an assessment of tax due, rather than implying a higher than normal standard, is a recognition that the result may necessarily involve an element of guesswork. It . .
Cited – Van Boeckel v Customs and Excise Commissioners 1981
The court explained the meaning of the requirement that a tax assessment made by the Commissioners should be the ‘best of their judgment’: ‘the Tribunal should not treat an assessment as invalid merely because they disagree as to how the judgment . .
Cited – Bi-Flex Caribbean Ltd v Board of Inland Revenue PC 1990
The general burden falls upon a tax payer to provide the information to allow a tax assessment to be made: ‘The element of guess-work and the almost unavoidable inaccuracy in a properly made best of judgment assessment, as the cases have . .
See Also – Pegasus Birds Ltd v Customs and Excise VDT 22-Oct-1997
The taxpayer asserted that the Commissioner’s assessment to VAT were out of time and had not been made to the inspector’s ‘best judgment’. . .
See Also – Pegasus Birds Ltd v H M Customs and Excise Admn 27-Nov-1998
The Excise Commissioners eventually issued an assessment to VAT in 1997 for 1993 after commencing their investigations in 1993.
Held: Section 73 did not operate as a full bar to the Commissioners making an assessment after the one year where . .
Cited – Pegasus Birds Ltd v Commissioners of Customs and Excise CA 10-Feb-2000
The company were said to have kept inadequate VAT Records. The parties disputed the sums due or evaded, and an assessment was only finally issued in 1997, at which point the taxpayer said that the assessment was out of time under section 73(6)(b). . .
At VDT – Pegasus Birds Ltd v Customs and Excise VDT 7-Jun-2002
The Tribunal was asked whether an assessment to VAT notified to the Respondent Company, Pegasus Birds Limited and contained in a formal notice of assessment was made to best judgment.
Held: It was not. The Respondent’s appeal succeeded. . .
Cited – Company Registrations Online Ltd v Revenue and Customs VDT 7-Aug-2008
VDT ASSESSMENT – best judgment – correctness of assessments accepted – challenge to the reasonableness of commissioners in raising an assessment – appeal dismissed. . .
Cited – Lok v Revenue and Customs FTTTx 14-Feb-2017
(Vat – Assessments : Best Judgment) VALUE ADDED TAX – Takeaway business – Assessed as liable for registration but no longer liable – Assessment raised – Whether assessment to best judgment? – Yes – Whether assessment should be adjusted? – No – . .
Cited – Volkswagen Financial Services (UK) Ltd v Revenue and Customs SC 5-Apr-2017
The court considered the VAT treatment general business overheads of a vehicle financing company, and in particular the ‘partial exemption special method’ (‘PESM’) agreed with HMRC for the valuation of the proportion of residual input tax . .
Lists of cited by and citing cases may be incomplete.
Updated: 24 July 2022; Ref: scu.199570
The Commissioners appealed from a decision of the Vat and Duties Tribunal
The Honourable Mr Justice Patten
[2003] EWHC 2552 (Ch)
England and Wales
See Also – Pegasus Birds Ltd v H M Customs and Excise Admn 27-Nov-1998
The Excise Commissioners eventually issued an assessment to VAT in 1997 for 1993 after commencing their investigations in 1993.
Held: Section 73 did not operate as a full bar to the Commissioners making an assessment after the one year where . .
See Also – Pegasus Birds Ltd v Customs and Excise VDT 22-Oct-1997
The taxpayer asserted that the Commissioner’s assessment to VAT were out of time and had not been made to the inspector’s ‘best judgment’. . .
See Also – Pegasus Birds Ltd v Commissioners of Customs and Excise CA 10-Feb-2000
The company were said to have kept inadequate VAT Records. The parties disputed the sums due or evaded, and an assessment was only finally issued in 1997, at which point the taxpayer said that the assessment was out of time under section 73(6)(b). . .
Appeal from – Pegasus Birds Ltd v Customs and Excise VDT 7-Jun-2002
The Tribunal was asked whether an assessment to VAT notified to the Respondent Company, Pegasus Birds Limited and contained in a formal notice of assessment was made to best judgment.
Held: It was not. The Respondent’s appeal succeeded. . .
Appeal from – Pegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Lists of cited by and citing cases may be incomplete.
Updated: 24 July 2022; Ref: scu.188059
[1998] EWHC Admin 231
England and Wales
Updated: 24 July 2022; Ref: scu.138352
Lady Justice Simler
[2021] EWCA Civ 91
England and Wales
Updated: 24 July 2022; Ref: scu.657391
ECJ Community Customs Code – Scope of Articles 203 and 204(1)(a) of Regulation (EEC) No 2913/92 – External transit procedure – Customs debt incurred through non-fulfilment of an obligation – Belated presentation of the goods at the office of destination – Sixth VAT Directive – Article 10(3) – Link between the incurring of customs debt and the incurring of VAT debt – Concept of taxable transactions
C-480/12, [2014] EUECJ C-480/12
European
Updated: 24 July 2022; Ref: scu.525533
ECJ Opinion – Taxation – Value added tax – Article 44 of Directive 2006/112/EC as amended by Directive 2008/8/EC – Definition of” permanent establishment ‘of the recipient of a service
Julianne Kokott AG
C-605/12, [2014] EUECJ C-605/12, [2014] EUECJ C-605/12
European
Updated: 24 July 2022; Ref: scu.525531
VALUE ADDED TAX – zero-rating – construction of building – VATA s 30(2), Sch 8 Group 5 – whether retention of party wall a condition of planning consent – yes – appeal allowed
[2012] UKFTT 249 (TC)
England and Wales
Updated: 24 July 2022; Ref: scu.462719
VAT – INPUT TAX – HMRC denied input tax claims totalling pounds 1,048,337.50 in respect of 12 transactions of mobile phones- Was there a VAT Loss? – Yes – Was the loss fraudulent? – Yes – Were the Appellant’s transactions connected with the fraud? – Yes – Did the Appellant know or should have known that its transactions were connected to fraudulent evasion of VAT? – Yes the Appellant knew – Appeal dismissed
[2012] UKFTT 616 (TC)
Updated: 24 July 2022; Ref: scu.466166
VAT – MTIC fraud – input tax – whether the purchases by the Appellant in the identified deals were ‘connected with fraudulent evasion of VAT’ as per Axel Kittel at para. [61] – held yes – whether the Appellant was a taxable person who knew or should have known that by its purchase it was participating in a transaction ‘connected with fraudulent evasion of VAT’ – held that HMRC had not proved knowledge but that the Appellant should have known of the connection in the case of each deal – Appeal dismissed
[2010] UKFTT 131 (TC)
England and Wales
Updated: 23 July 2022; Ref: scu.408948
Neuberger J
[2001] EWHC Ch 485, [2001] STI 1346, [2002] BVC 297, [2002] BTC 5183, [2001] STC 1495
England and Wales
Updated: 23 July 2022; Ref: scu.346885
Field J
[2004] EWHC 192 (Ch), [2004] STC 577, [2004] BTC 5552, [2004] BVC 611, [2004] STI 373
England and Wales
Updated: 23 July 2022; Ref: scu.346722
Patten J
[2009] EWHC 487 (Ch), [2009] STI 775, [2009] STC 1577, [2009] BTC 5308, [2009] BVC 307
England and Wales
Appeal from – Boots Company Plc v HM Revenue and Customs CA 17-Dec-2009
. .
Cited – Oxfam v Revenue and Customs ChD 27-Nov-2009
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 . .
Lists of cited by and citing cases may be incomplete.
Updated: 23 July 2022; Ref: scu.322747
reasonable excuse appeal
[2008] UKVAT V20851
Updated: 23 July 2022; Ref: scu.301856
VDT Reasonable excuse appeal
[2008] UKVAT V20850
Value Added Tax Tribunals Rules 1986
Updated: 23 July 2022; Ref: scu.301853
VDT VAT assessment – input tax – whether deductible – whether goods or services used for the purpose of a business – input tax on expenditure incurred on re-fitting a yacht – business of trader comprised consultancy in development of thinking skills – yacht provided stimulation to creative thinking – expenditure not directly referable to the purpose of the business – input tax deduction not available – appeal dismissed – VATA 1994 ss24 and 26
[2008] UKVAT V20884
Updated: 23 July 2022; Ref: scu.301847
VDT COSTS – Litigant in person – Claim for costs in respect of Appellant’s own time and work expended in pursuing the appeal – Whether litigant in person entitled to such costs-‘Costs recoverable at common law’ – Whether such costs are now recoverable at common law – Meaning of common law – VAT Trib Rules 1986, r 29
[2008] UKVAT V20906
Updated: 23 July 2022; Ref: scu.301887
VDT Trade Association – whether entitled to exemption from VAT on members subscriptions and other supplies under Art.132(1)(l) of the Consolidated Directive as a trade union or civic organisation or under Item 1 of Group 9 of Schedule 9 to VATA 1994. Held registrable. Appeal dismissed.
[2008] UKVAT V20887
Updated: 23 July 2022; Ref: scu.301876
FTTx VALUE ADDED TAX – Supply of services – Loft conversions – Taxpayer agreed with contractors they would be paid by clients out of clients’ accounts – Whether taxpayer project manager on clients’ behalf – Whether taxpayer making supply of loft conversions or only of project management – Appeal dismissed
[2008] UKVAT V20888
England and Wales
At VDT – A1 Lofts Ltd v Revenue and Customs ChD 30-Oct-2009
Lewison J said: ‘The court is often called upon to decide whether a written contract falls within a particular legal description. In so doing the court will identify the rights and obligations of the parties as a matter of construction of the . .
Lists of cited by and citing cases may be incomplete.
Updated: 23 July 2022; Ref: scu.301870
VALUE ADDED TAX . . zero-rating – intra-Community trade – Sixth Directive art 28cA)(a) – VAT Regs 1995, reg 134 – Public Notice 725 para 4.3 – CMRs used as evidence of removal from UK probably falsified – whether Appellant took sufficient care – no – appeal against assessment for output tax dismissed
[2008] UKVAT V20895
Updated: 23 July 2022; Ref: scu.301882
VAT – ZERO RATING – CONFECTIONARY – whether Crunchy Granola Bars biscuits – no – Appeal dismissed
[2008] UKVAT V20905
Updated: 23 July 2022; Ref: scu.301875
Reasonable excuse appeal against surcharge
[2008] UKVAT V20852
Updated: 23 July 2022; Ref: scu.301862
VDT VAT – Input Tax – Dealer in mobile phones – MTIC fraud – Whether defaulter has to be the importer – Whether fraudulent tax loss shown – Admissibility of evidence – Whether third party payments evidence of MTIC fraud – Whether similar fact evidence admissible – Whether delay relevant – Whether Appellant had knowledge or means of knowledge – Relevant test – Whether Appellant entitled to recover input tax paid to buffer traders – Appeal allowed in part
J C Gort C
[2008] UKVAT V20900, [2009] STI 159
Appeal from – Red 12 Trading Ltd v Revenue and Customs ChD 20-Oct-2009
Appeal against refusal to allow reclaim of input tax in case of alleged ‘Missing Trader Intracommunity Fraud’.
Held: Christopher Clarke J said: ‘Examining individual transactions on their merits does not, however, require them to be regarded . .
Lists of cited by and citing cases may be incomplete.
Updated: 23 July 2022; Ref: scu.301884
DEFAULT SURCHARGE – bank informing the Appellant about a wrong cut-off time for making CHAPS payment – reasonable excuse – appeal allowed
[2008] UKVAT V20874
England and Wales
Updated: 23 July 2022; Ref: scu.301861
VDT DEFAULT SURCHARGE – Reasonable excuse – Enquiry as to effect of part payment – Misunderstanding – No clear evidence as to what was said – Tribunal not satisfied within VATA s.59(7) – Complaint of lack of advice as to cash accounting held not a reasonable excuse – Principle of proportionality not infringed – Appeal dismissed
[2008] UKVAT V20902
Updated: 23 July 2022; Ref: scu.301880
VDT MONEY LAUNDERNG – whether appellant a high value dealer – When appellant required to register – whether penalty appropriate for failing to register before acting as a high value dealer- Money Launderng Regs 2003, reg 9
[2008] UKVAT V20833
Updated: 23 July 2022; Ref: scu.301812
VDT VAT – DIY BUILDERS SCHEME – Appellant claimed VAT on supply of a domestic fire sprinkler system – Respondents originally refused the refund on the ground that the sprinkler system was not building materials – Respondents changed its case arguing it was a mixed supply of goods and services – decided a composite supply of zero-rated services – Appeal dismissed.
[2009] UKVAT V20948
Updated: 23 July 2022; Ref: scu.301753
Formal dismissal of appeal.
[2008] UKVAT V20853
Updated: 23 July 2022; Ref: scu.301833
VDT CIVIL EVASION PENALTY – paying centrally issued assessment of andpound;421 when the correct liability was over andpound;3m – whether for the purpose of evading VAT – yes – whether dishonest – yes – appeal dismissed
[2008] UKVAT V20877
Updated: 23 July 2022; Ref: scu.301841
[2008] UKVAT V20794
England and Wales
Updated: 23 July 2022; Ref: scu.301786
INPUT TAX – Appellant registered as provider of exempt supplies childcare – subsequently it provided taxable supplies of management consultancy – Following advice from HMRC all its input tax reclaimed – Whether issue wrong advice justiciable in Tribunal – No
MISDECLARATION PENALTY – Whether Appellant entitled to rely on wrong advice from HMRC as reasonable excuse – Whether HMRC given sufficient information – No
[2008] UKVAT V20793
England and Wales
Updated: 23 July 2022; Ref: scu.301785
TRANSFER OF A GOING CONCERN – initial transfer not qualifying, subsequently novated in circumstances which qualified – whether treatment applicable to subsequent payments treated as separate supplies – subsequent payments not consideration for the sale of business so the issue did not arise
EXEMPTION – insurance brokers and insurance agents whether introduction of existing insureds on sale of business by former insurer qualified – no
[2008] UKVAT V20856
England and Wales
Updated: 23 July 2022; Ref: scu.301828
Appeal against a decision of the Respondents with respect to a surcharge assessment in the sum of 767.17 pounds and being a reasonable excuse appeal
[2008] UKVAT V20806
England and Wales
Updated: 23 July 2022; Ref: scu.301774
[2008] UKVAT V20840
England and Wales
Updated: 23 July 2022; Ref: scu.301799
REQUIREMENT FOR SECURITY – appeal dismissed.
[2009] UKVAT V20953
England and Wales
Updated: 23 July 2022; Ref: scu.301757
Reasonable excuse appeal
[2008] UKVAT V20876
England and Wales
Updated: 23 July 2022; Ref: scu.301834