VAT – exemption – financial services – Art 13B(d)(3), Sixth Directive – Group 5, Sch 9 VATA 1994 – booking fees on concert ticket purchases – whether for ‘card processing services’ – effect of Scottish Court decision on English tribunal
[2015] UKUT 23 (TCC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542301
VALUE ADDED TAX – zero rating – construction of nursing home on site of and incorporating redundant church building – whether construction of building for purposes of Item 2 Group 5 Schedule 8 VAT Act 1994 – yes – whether enlargement of or extension to existing building – no – whether special residential conversion of building – yes – appeal dismissed
[2015] UKUT 21 (TCC), [2015] STI 252, [2015] BVC 505, [2015] STC 1033
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542300
The court was asked as to the limits on the ability of a trader to claim repayment of or credit for VAT paid by him on purchasing goods. The usual position is that, where a trader has received VAT on sales made by him, he has the right to credit for input tax which he has paid on his purchases. If the input tax exceeds the output tax for which he must account to the respondent (‘HMRC’) at the end of the relevant period, he is entitled to repayment of the difference. Those rights are fundamental to the way VAT operates.
Arden, McFarlane, Burnett LJJ
[2015] EWCA Civ 39
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542211
FTTTx VALUE ADDED TAX – exemption for sporting supplies – Group 10, Schedule 9, VATA – whether two subsidiaries of the Appellant (itself an ‘eligible body’ within Note (2A) to Group 10) were themselves ‘eligible bodies’ within Note (2A) – held no ‘non-profit-making aim’ was discernible from the constitutions of the subsidiaries and that no other ‘specific facts’ suggesting that the subsidiaries had a ‘non-profit-making aim’ obviated the necessity of such an aim being discernible from their constitutions – Kennemer Golf and Country Club v Staatssecretaris van Financien (Case C-174/00) [2002] STC 502 applied – appeal dismissed
John Walters QC TJ
[2015] UKFTT 0034 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542050
FTTTx VAT – Flat Rate Scheme – Whether mechanical engineering relating to subsea equipment should be categorised as ‘architect, civil and structural engineer or surveyor’ – no – whether HMRC decision was reasonable – no – appeal allowed
Anne Scott TJ
[2015] UKFTT 43 (TC)
Bailii
England and Wales
VAT, Construction
Updated: 27 December 2021; Ref: scu.542048
FTTTx VAT default surcharge – payment six days late – Appellant obliged to pay electronically – payment made by cheque – major customer late in making payment which affected cash flow – insufficiency of funds – no request for time to pay – whether on the facts a reasonable excuse – no – appeal dismissed
[2015] UKFTT 23 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542034
FTTTx VAT – Penalty Schedule 24 Finance Act 2007 para 15(1); error in claiming a refund of VAT under the DIY Housebuilder’s scheme (Schedule 35 VAT Act 1994); whether the use of the wrong form fell within the scope of the penalty provisions of para 1 Schedule 24 FA 2007 (Error in Taxpayer’s document) – no
[2015] UKFTT 38 (TC)
Bailii
VAT Act 1994 Sch35, Finance Act 2007 24
England and Wales
VAT, Construction
Updated: 27 December 2021; Ref: scu.542041
FTTTx VAT – Strike out application – repayment claims – VAT returns submitted many years late -overpayments made on estimated assessments – all claims out of time -Human Rights Act and European Convention on Human Rights Article 1 Protocol 1 argued- held – Human Rights Act not engaged- application of time limits within state’s margin of appreciation -no legal basis on which time limits could be extended -appeal no reasonable prospect of success – strike out allowed.
[2015] UKFTT 0032 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542031
FTTTx VAT – partial exemption – CVCP Agreement between universities and HMRC – whether HMRC approved a new non-CVCP retrospective partial exemption special method (‘PESM’) from 1973 to 1994 – whether a combined business/non-business method was ultra vires – whether a PESM is valid if it is not fair and reasonable – whether non-inclusion of grant income in PESM means it was not fair and reasonable – further 1997 claim for residual VAT on overheads of academic departments – 1997 claim based on PESM but subject to three year cap – Fleming claim to recover further residual VAT for period from 1973 to 1994 – whether HMRC able to reopen earlier claims so as to include grant income – evidential issues – earlier years of Fleming claim dismissed for lack of evidence – adjournment of later years – directions given
[2015] UKFTT 0033 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542037
FTTTx VALUE ADDED TAX – Denial of input tax recovery as said to be connected with fraud -Whether properly denied – On facts neither, actual knowledge of fraud or only reasonable explanation of taxpayer’s transactions shown by HMRC who had onus – Appeal allowed
[2015] UKFTT 26 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542040
FTTTx VAT – default surcharge – whether Tribunal has jurisdiction to consider an appeal against a surcharge not actually collected due to HMRC administrative practice of not enforcing surcharges of less than andpound;400 imposed at 2% or 5% rate – practical implications in similar appeals considered – whether reasonable excuse for default in this case – appeal dismissed, even though no surcharge actually imposed
[2015] UKFTT 37 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542029
FTTTx VALUE ADDED TAX – supply – supplies made more than six months before registration – VAT Regulations 1995 reg 111 – whether supplies were of goods or services – argument that supplies were of an intangible asset – reference to HMRC Business Income Manual – held, under Article 14(1) of VAT Directive, that supplies were of services – appeal on substantive issue dismissed – appeal against penalty – Sch 24 FA 2007 – consideration of factors – held, no advance disclosure – disclosure prompted – no adjustment – as HMRC decision on special circumstances not flawed, no special reduction – penalty confirmed – consolidated appeals dismissed
John Clark TJ
[2015] UKFTT 24 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542049
FTTTx Value Added Tax – Purchase of Apple iPhones by Appellant through 80 employees who bought small quantities from Apple retail stores either in their own individual names or more usually in false names or without giving any name, and never openly on behalf of the Appellant – Effect of section 47(2A) VAT Act 1994 – Whether HMRC’s refusal to accept other evidence, in the absence of valid VAT invoices, to constitute sufficient evidence of the supply of the phones to the Appellant was reasonable – Whether section 47(2A) VAT Act 1994 complies with the provision in Article 14.2 (c) of the EC Directive 2006/112/EC and whether this issue should be referred to the ECJ – Appeal dismissed
[2015] UKFTT 0036 (TC)
Bailii
VAT Act 1994 47(2A), EC Directive 2006/112/EC 14.2
England and Wales
VAT, European
Updated: 27 December 2021; Ref: scu.542046
FTTTx VAT – failure to respond to requests for information concerning application to register; issuing invoices and collecting VAT when unregistered; failure to account for VAT; reasonable excuse for delays – no; wrongdoing penalty payable.
[2015] UKFTT 31 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542038
VAT – whether veranda sold with a static caravan is zero-rated as part of a single supply – Group 9, Sch 8 VATA – whether principles in Card Protection Plan (CPP) apply – Talacre Beach, French Undertakers and Morrisons considered
[2015] UKUT 2 (TCC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.541529
INPUT TAX – Whether input tax incurred on legal fees relating to action against previous directors attributable to taxable supplies made by the Appellant – was there a direct and immediate link – whether Investrand BV applies – Appeal dismissed
[2010] UKFTT 195 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.422172
VAT- ZERO -RATING -one hundred and twenty eight supplies of goods to Spain and Poland – Customers in Spain and Poland missing traders – no persuasive evidence that the goods reached Spain or Poland – commercial documentation unsatisfactory – appellant failed to make appropriate enquiries by way of due diligence – appellant knew, or ought to have known that the transactions were fraudulent – appeal dismissed
[2010] UKFTT 167 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.422185
VALUE ADDED TAX – Acquisition VAT – whether VAT chargeable on an acquisition of goods by the Appellant where the goods had not been removed to the UK but a UK VAT registration number had been used in the acquisition – held it was – whether the Appellant was entitled to credit for input tax in relation to the VAT charged on the acquisition – held it was not because it had not proved that the acquisition had been for the purposes of an onward taxable supply – Appeal dismissed
[2010] UKFTT 163 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.422193
INPUT TAX – claim by Appellant to recover VAT on the supply of insolvency practitioner fees – those fees incurred in connection with the liquidation of a separate company – were the fees incurred in the course or furtherance of Appellant’s business – no – appeal dismissed
[2005] UKVAT V19290
Bailii
VAT
Updated: 27 December 2021; Ref: scu.237998
The taxpayer requested refund of VAT overpaid on chocolate covered cakes. The CandE resisted saying that the money had been substantially already paid by its customers. The case had been referred twice to the ECJ, who answered that the maintenance of exemptions or of reduced rates of VAT lower than the minimum rate laid down by the Sixth Directive is permissible only in so far as it complies with, inter alia, the principle of fiscal neutrality inherent in that system, and that fiscal neutrality is a fundamental principle of VAT.
Held: Though the ECJ answer might allow further litigation, the House allowed the taxpayer’s appeal on the basis that ‘the Commissioners have, after thirteen years of litigation, decided that they do not wish to pursue these matters.’
Lord Hoffmann, Lord Scott of Foscote, Lord Walker of Gestingthorpe
[2009] UKHL 8, [2009] STC 452, [2009] STI 474, [2009] BTC 5106, [2009] BVC 106, [2009] 1 All ER 939
Bailii, HL
England and Wales
Citing:
Appeal from – Marks and Spencer Plc v Commissioners of Customs and Excise (No 5); Commissioners of Customs and Excise v University of Sussex CA 21-Oct-2003
The company sought to reclaim overpaid VAT.
Held: If the UK government had failed properly to implement the directive, then a person affected had the right to claim the benefit of direct enforceability. However, the directive itself was . .
Reference to ECJ – Marks and Spencer Plc v Customs and Excise HL 12-Jul-2006
Question referred to ECJ. Five questions were referred. . .
Decision to refer to ECJ – Marks and Spencer Plc v Customs and Excise HL 28-Jul-2005
The claimant had sought repayment of overpaid VAT, and the respondent resisted arguing that this would be an unjust enrichment. A reference to the European Court was sought.
Held: It was not possible to say that the House’s opinion was acte . .
Advocate General’s opinion – Marks and Spencer v Her Majesty’s Commissioners of Customs and Excise ECJ 13-Dec-2007
ECJ Value added tax – Derogation under Article 28 of Directive 77/388 – Principle of neutrality Principle of equal treatment Right to obtain a refund of the tax in the event of incorrect interpretation of . .
ECJ Decision – Marks and Spencer v Her Majesty’s Commissioners of Customs and Excise ECJ 10-Apr-2008
(Third Chamber of the Court of Justice) Taxation Sixth VAT Directive Exemption with refund of tax paid at the preceding stage Erroneous taxation at the standard rate Right to zero rate Entitlement to refund Direct effect General principles of . .
Opinion on first reference – Marks and Spencer v Commissioners of Customs and Excise ECJ 11-Jul-2002
ECJ Sixth VAT directive – National legislation retroactively curtailing a limitation period for repayment of sums unduly paid – Compatibility with the principles of effectiveness and of the protection of . .
Judgment on first reference – Marks and Spencer plc v Commissioners of Customs and Excise ECJ 11-Jul-2002
The claimant challenged the reduction of the limitation period from six years to three for the reclaiming of overpaid VAT with immediate effect, depriving it of the opportunity to recover sums paid in excess. The company sold vouchers. It paid VAT . .
Cited – Argos Distributors v Commissioners of Customs and Excise ECJ 24-Oct-1996
VAT was payable on the value of a discount voucher only, and not on the full price of the goods. ‘According to the court’s settled case law, the taxable amount for the supply of goods or services is represented by the consideration actually received . .
First instance – Marks and Spencer Plc v Commissioners of Customs and Excise Admn 21-Dec-1998
The limitation period for the recovery of overpaid VAT was alleged to offend the principle of equivalence.
Held: Moses J said: ‘In my judgment no comparison can be made with other types of tax such as income tax payable in respect of an . .
At CA – Marks and Spencer Plc v Customs and Excise CA 14-Dec-1999
The taxpayer discovered that it had over several years made overpayments of VAT on chocolate covered biscuits because of a mistake as to the tax mutual with the defendants.
Held: MandS’s challenge to section 80(4) (as infringing EU law) . .
Lists of cited by and citing cases may be incomplete.
VAT, European
Updated: 27 December 2021; Ref: scu.280437
VDT VAT – PENALTIES – default surcharge – extra days allowed for payment of VAT for electronic means – payment by bank giro credit transfer – notes on reverse of Form VAT 100 found to be misleading – reasonable excuse held to exist for late payment of tax in reliance upon wording of notes – appeal allowed
[2005] UKVAT V19165
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.229613
VAT – PENALTIES – default surcharge – extra days allowed for payment of VAT for electronic means – payment by bank giro credit transfer – notes on reverse of Form VAT 100 found to be misleading – reasonable excuse held to exist for late payment of tax in reliance upon wording of notes – appeal allowed
[2005] UKVAT V19164
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.229612
VALUE ADDED TAX – Assessment Disputed Assessment – Penalty – Evasion of tax – Conduct involving dishonesty – section 60 VATA – jurisdiction of the Tribunal under section 61(5)(b) – amounts assessed on a ‘named officer’ under section 61 VATA – on the facts assessment confirmed – dishonesty found in relation to some but not all issues raised – Mitigation – Penalties confirmed in reduced amounts.
[2005] UKVAT V19149
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.229621
reasonable excuse appeal
[2005] UKVAT V19106
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.229560
VALUE ADDED TAX – whether or not fruit and vegetable juices sold as meal replacements were beverages and therefore standard rated – held not beverages and therefore zero-rated as food – appeal allowed
[2018] UKFTT 741 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.632438
MISDECLARATION PENALTY – penalty of approx. pounds 2.5m imposed after Kittel appeal struck out and shortly before HMRC agreed to pay repayment supplement for earlier periods – preliminary issue whether assessment formally valid – yes – preliminary issue whether Tribunal has jurisdiction to award hardship -no – Guernsey Leasing not followed – whether all grounds of appeal to be struck out – all struck out except case that penalty disproportionate
[2018] UKFTT 759 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.632455
VAT – whether this appeal should be struck out on the basis that it has no reasonable prospect of success- yes – appeal struck-out
[2020] UKFTT 278 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.652722
Value Added Tax – default surcharges – appellant believed payments would be received by due dates – bank evidence in support – HMRC evidence inconsistent – appeal allowed
[2018] UKFTT 730 (TC)
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.632439
ECJ Sixth VAT Directive – Articles 2(1) and 4 – Scope – Concepts of ‘supply of services effected for consideration’ and ‘economic activity’ – Sale of defaulted debts – Sale price lower than the face value of those debts – Assumption of responsibility by the purchaser for the recovery of those debts and for the risk of defaulting debtors
K Lenaerts, P
[2011] EUECJ C-93/10
Bailii
European
Citing:
Opinion – Finanzamt Essen-NordOst v GFKL Financial Services ECJ 14-Jul-2011
ECJ (Opinion of AG Jaaskinen) Purchase of defaulted debts at a price calculated in relation to the likelihood of default – Sixth VAT Directive – Scope – Article 2(1) – Supply of services for consideration . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 24 December 2021; Ref: scu.540511
FTTTx VAT – property used for weddings – overnight accommodation not provided – assessment of the evidence – Secret Hotels 2 considered – contract between the parties not contained in a single document – terms of the contract – whether single supply – whether exempt supply – whether customer had right to occupy as owner – whether a relatively passive activity – held, single standard rated supply of services.
[2014] UKFTT 1083 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540320
FTTTx VAT – EXEMPT SUPPLIES – Education – Land – whether term-time supplies of student accommodation exempt or standard-rated- whether supplies made by college or its wholly owned subsidiary with whom the students concluded accommodation agreements – economic reality was that college was the supplier – supply of accommodation exempt as closely related to education (Group 6 Schedule 9 VATA 1994) – in any case supply of accommodation by subsidiary would not have fallen within exception provided by Item 1(d) Group 1 Schedule 9 VATA 1994 to land exemption – college in term-time was not a similar establishment to hotel – appeal dismissed
[2014] UKFTT 1092 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540311
FTTTx VAT – default surcharge – whether reasonable excuse – section 59(7) Value Added Tax Act 1994 -appellant designs and organises manufacture of garments to clothing retailers – financial difficulties caused variously by major customer changing terms of business, and defective product run – appeal allowed in part
[2014] UKFTT 1093 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540308
FTTTx VALUE ADDED TAX – charity – supplies of catering services – whether supplied in the course or furtherance of a business – provision of books and publications – whether supplied for a consideration – no – appeal dismissed
[2014] UKFTT 1080 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540303
FTTTx VAT – assessment to recover input tax claimed in respect of supplies for which no payment made within six months of relevant date – s 26A VATA – whether such payment had been made – no – appeal dismissed
[2014] UKFTT 1074 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540300
FTTTx VALUE ADDED TAX- repayments – Appellant supplying investment management and administration services to a group pension fund – VAT charged on all services – no over-charge in respect of net of VAT costs themselves – Appellant ‘refunds’ part of payment made by pension fund – whether a decrease in consideration for the supply within regulation 38 Value Added Tax Regulations 1995 – appeal dismissed
[2014] UKFTT 1059 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540293
FTTTx VAT – MTIC – preliminary issue – knew or should have known of fraud – outsourced trades to agent – agent knew of fraud -fraud of agent against Appellant – fraud exception for agents and employees – Greener Solutions applied -connection of fraud with disputed VAT transactions – fraud of agent not directly related to disputed VAT transactions – fraud exception does not apply – appeal dismissed.
[2014] UKFTT 1089 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540306
FTTTx VAT – application for leave to appeal out of time – Strike-out sought – Rule 8(2)(a) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 – leave to appeal late refused – Strike-out granted
[2014] UKFTT 1068 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540309
FTTTx VAT – whether appealable decision – letter referred appellant to public notice – refusal to make decision is not to be treated as a deemed decision – appeal struck out – Tribunal has no power to direct HMRC to make a decision – appellant failed to demonstrate sufficient interest in appeal in any event
[2014] UKFTT 1062 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540291
FTTTX VAT – MTIC fraud allegations – whether statement of case sufficiently particularised – failure to allege dishonesty with clarity – requirement for primary facts only and not full particulars to be contained in statement of case
[2014] UKFTT 1063 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540288
FTTTx VAT – supplies of services by mother church of Scientology religion to churches in the UK – whether single supply or multiple supplies – whether exempt as educational services or standard rated as governance and ecclesiastical management services – art 132(1)(i), principal VAT Directive; Items 3 and 4, Group 6, Sch 9 VATA 1994
[2014] UKFTT 1064 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.540287
FTTTX VALUE ADDED TAX – building construction services – redevelopment of a college campus in stages – whether each stage should be considered separately in applying item 2 of Group 5, Schedule 9 VATA (zero-rating) – or whether a global view comprising all the buildings erected in all the stages should be considered – the final stage delayed by funding problems – held the stages were stand alone projects which should be considered separately – on such consideration held that zero-rating did not apply by reason of the exclusions from zero-rating of enlargements and extensions to existing buildings in Note (16) of items 2 – appeal dismissed
[2014] UKFTT 1058 (TC)
Bailii
England and Wales
VAT, Construction
Updated: 24 December 2021; Ref: scu.540285
ECJ Judgment – Reference for a preliminary ruling – Indirect taxation – VAT – Sixth Directive – Articles 18 and 22 – Right to deduct – Intra-Community acquisitions – Reverse charge procedure – Substantive requirements – Formal requirements – Failure to comply with the formal requirements)
C-590/13, [2014] EUECJ C-590/13, ECLI:EU:C:2014:2429
Bailii
European
VAT
Updated: 24 December 2021; Ref: scu.539906
VAT – Registration threshold – whether exceeded – Yes – liability to assessment and penalty – Sections 67 and 70, and Schedule 1, VATA 1994 and VAT Regulations 1995 (SI 1995/2518) – penalty mitigated; quoad ultra appeal dismissed
[2014] UKFTT 1041 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.539422
FTTTx Application for directions made by Vale Europe in the context of its appeal against decisions of HMRC denying it VAT input tax credit in respect of 66 purchases of palladium and platinum. HMRC allege that these purchases were connected with VAT fraud and that Vale Europe knew or should have known of that connection, or alternatively of a connection to ‘fraud in general’, and that as a result Vale Europe is not entitled to input tax credit.
[2014] UKFTT 1042 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.539429
VAT – whether building intended for use solely for a relevant charitable purpose – charity with objects of educating young people in water borne activities – construction of training centre – whether construction services zero-rated – whether charity carrying on a business/economic activity – Section 30 and items 2 and 4 of Group 5 of Schedule 8 to VATA 1994 – Note (6) to Group 5
[2014] UKUT 504 (TCC)
Bailii
England and Wales
VAT, Charity
Updated: 24 December 2021; Ref: scu.539411
UTTC VALUE ADDED TAX – input tax – DIY Builders Scheme – construction of dwelling as equestrian facilities managers residence – whether designed as a dwelling for purposes of Group 8 of Schedule 5 VAT Act 1994 – whether description in planning application as equestrian facilities managers residence prohibited separate use of dwelling – no – whether planning permission condition that occupation of dwelling be limited to person solely employed by the equestrian business and any resident dependants prohibited separate use of dwelling – yes – appeal allowed
[2014] UKUT 453 (TCC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.539405
FTTTx Value Added Tax – sales of rights to access genealogical websites – nature and time of supply – whether ‘face value vouchers’ – repayment claim in respect of unredeemed vouchers – VATA 1994, Schedule 10A, para 1 – Appeal dismissed
[2014] UKFTT 1040 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.539414
FTTTx VAT – DIY Housebuilders’ Scheme – whether part of building a garage – Yes -whether garage part of building occupied together with a dwelling – Yes – whether non residential part of building created an additional dwelling – Yes – Section 35, Schedule 8, Group 5, Notes 7A, 8, and 9 VATA 1994. Appeal allowed.
[2009] UKFTT 387 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.539419
Default Surcharges – Late payment – Faster Payment – Effect of furlough – Was there a reasonable excuse? – No – Appeal dismissed
[2021] UKFTT 334 (TC)
Bailii
England and Wales
VAT
Updated: 24 December 2021; Ref: scu.669751
VAT – whether due on goods imported – appeal dismissed
[2014] UKFTT 282 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.525257
Value Added Tax — repayment claim – s. 80 (1) Value Added Tax Act 1994 — three year time limit – s. 80 (4) Value Added Tax Act 1994 — whether valid claim for repayment of output tax was made pursuant to Regulation 37 Value Added Tax Regulations 1995/2518 — held no
[2010] UKFTT 472 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.426633
VAT – Input tax – Invoice – Nature of goods
VAT – Input tax – Non compliant invoice – Discretion to permit deduction – Reg 29
VAT- Assessment – Section 73(2) – to recover VAT which should not have been repaid
[2010] UKFTT 159 (TC), [2010] BVC 2260
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.422175
COMPULSORY REGISTRATION – Appellant supplying services – Whether, on the evidence, Appellant an employee or self-employed
COMPULSORY REGISTRATION – Calculation of value of supplies included large error, correction of which reduced value below registration threshold – Decision to register based on admissions not on erroneous calculation – On evidence, Appellant’s receipts substantially in excess of threshold – Whether registration valid – Yes – VATA 1994, Sch 1, para 1(1)(a)
ASSESSMENT – Quantum – Appellant stated that he repaid substantial proportion of money received by him from ’employer’ – Appellant stated that he incurred expenses – No evidence of amount of either repayments or expenses – Whether allowance should be made, in calculating quantum of assessment, for repayments and expenses – No
[2005] UKVAT V19295
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.237991
Value Added Tax; expenses of appeal; discretion of Tribunal; appellant achieving substantial success; factors taken into account in restaurant suppression case.
[2005] UKVAT V19348
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.238066
reasonable excuse appeal
[2005] UKVAT V19294
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.238026
Assessment – Quantum – Appellant’s records defective – Assessments based on turnover in accounts – Evidence by auditor that turnover overstated – Material insufficient to satisfy burden of proof – Appeal dismissed
[2005] UKVAT V19121
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.229565
VAT – Abuse of Law doctrine – Remittal of case by the Court of Appeal
[2020] UKFTT 366 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.654110
FTTTx VAT – appeal against denial of input tax claim – HMRC application for strike out of proceedings – appellant convicted of recklessly submitting a false VAT return – s 72(3)(b) VATA 1994 – whether abuse of process – doctrine of issue estoppel – whether no reasonable prospect of success – Kittel principle – proceedings struck out
[2014] UKFTT 1026 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539030
FTTTx VAT – alterations to protected buildings – reconstruction of detached garage at the same time as of reconstruction of house – whether garage part of protected building; whether earlier works constituted a substantial reconstruction.
[2014] UKFTT 1011 (TC)
Bailii
England and Wales
VAT, Construction
Updated: 23 December 2021; Ref: scu.539031
FTTTx VAT – input tax – purchase of iPhones – full VAT invoices not obtained to support claim to input tax – various ordinary retail receipts provided instead – whether supplies actually made to the Appellant, supporting a claim for input tax – section 47(2A) VATA considered – whether adequate alternative evidence of the incurring of input tax – whether HMRC’s refusal to accept alternative evidence was reasonable – appeal dismissed
[2014] UKFTT 1003 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539032
FTTTx VAT – late registration – assessment of consultant psychiatrist’s medico legal services – not exempt under Group 7 of Schedule 9 VAT Act 1994 – Appellant sought to recover VAT not charged on original invoices by issuing supplemental VAT invoices following registration – claim for bad debt relief on VAT not recovered from Legal Aid Authority – whether unjust enrichment to the state – no – appeal dismissed
[2014] UKFTT 1013 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539009
FTTTx VAT – Assessment in case of incomplete or incorrect return – VATA s 73 – Penalty for dishonest evasion of VAT – VATA s 60 – INCOME TAX – Discovery assessment – TMA s 29 – Dispute concerning facts on which the assessments and penalties based – Appeal allowed
[2014] UKFTT 1012 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539017
FTTTx VAT – exemption for supply of private tuition – Item 2, Group 6 of Sch 9 VATA – Principal VAT Directive, art 132(1)(j) – whether teaching of pilates is an exempt supply – meaning of ‘school or university education’ – meaning of ‘subject ordinarily taught in school or university’
[2014] UKFTT 1034 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539012
FTTTx VAT – zero rating – supplies of military reconnaissance equipment from second appellant to first appellant and from first appellant to United States government for onward sale to governments of Poland and Greece pursuant to US ‘Foreign Military Sales’ programme – whether zero rated under VATA Schedule 8, Group 13, item 2 (supply to an overseas authority charged with the management of a defence project the subject of an international collaboration arrangement in the course of giving effect to that arrangement) – whether US Foreign Military Sales programme is such an arrangement – note (1) to item 2 considered – held no – appeal dismissed
[2014] UKFTT 1029 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539010
FTTTx VAT default surcharges – conjoined appeals relating to three separate VAT quarters – whether reasonable excuse for late payments – insufficiency of funds – whether reasonable excuse – yes for one period – Appeal allowed in part
[2014] UKFTT 976 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539004
FTTTx VAT – Missing Trader Intra-community Fraud – Contra-trading – traced to defaulting trader- traced to tax loss – linked to fraudulent evasion -known or should have known that transactions connected to fraud – case management – adjournment applications -fair and just hearing – Appellants no legal representation – Appellants’ representative and main witness ill health – medical evidence required – proceeding in absence of Appellants’ representative – adjournment requests denied.
[2014] UKFTT 985 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539005
FTTTx VAT – exempt supplies -supply of private tuition by an individual teacher acting independently – tuition in yoga – whether tuition in a subject ordinarily taught in a school or university – no – supplies of tuition services chargeable to VAT – Item 2, Group 6, Schedule 9 VATA 1994 – appeal dismissed
[2014] UKFTT 959 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.539002
FTTTx VAT – denial of input tax deductions – transactions connected with fraudulent transactions – whether Appellant knew or should have known that the deals were so connected – Kittel and Mobilx applied – director of Appellant sophisticated and knowledgeable – no commercial explanation for how deals arranged- large number of similar deals – mobile phone handsets not new to market – box ticking due diligence – should have known that first deal connected to fraud – knew remaining 15 deals connected to fraud -appeal dismissed.
[2014] UKFTT 963 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.538995
Value added tax – default surcharge – reasonable excuse – time to pay agreements – appeal dismissed
[2014] UKFTT 962 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.538986
FTTTx VAT – application for an extension of time to bring an appeal – nature of decisions under appeal – whether assessments – time limit for appealing – balancing exercise – application refused – appeal struck out
[2014] UKFTT 966 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.538984
Land – exempt supplies
[2014] UKFTT 1033 (TC)
Bailii
England and Wales
VAT
Updated: 23 December 2021; Ref: scu.538974
The revenue wished to refuse a claim to set off input tax for two transactions involving the alleged purchase of software. They said the transactions were a sham.
Held: The revenue’s appeal failed.
Briggs J said: ‘the critical question whether a transaction which, as documented, appears to attract certain VAT consequences is to be deprived of those consequences because it is a sham, is whether the rights and obligations expressed in the documents, to the extent relevant for VAT purposes, are different from those which the parties intended to confer and incur. ‘ In this case the tribunal had not decided that the taxpayer was party to a fraud, since it had not been asserted that he was: ‘it is a cardinal principle of litigation that if serious allegations, in particular allegations of dishonesty are to be made against a party who is called as a witness they must be both fairly and squarely pleaded, and fairly and squarely put to that witness in cross examination.’
Before a finding of dishonesty can be made it must not only be pleaded, but also put in cross-examination. Briggs J considered a submission that dishonesty having been pleaded it had not been necessary to put the allegation to the defendant, and said: ‘I emphatically disagree with that submission. First, the Tribunal’s summary of what was not put in cross examination is stated with clarity on no less than three occasions in the Decision and I was provided neither with a transcript, nor notes (whether by the Tribunal itself or by the parties) of the cross examination with which to be in any position to conclude that the Tribunal’s summary of the cross examination was other than fair and accurate. Secondly, it is a cardinal principle of litigation that if serious allegations, in particular allegations of dishonesty are to be made against a party who is called as a witness they must be both fairly and squarely pleaded, and fairly and squarely put to that witness in cross examination. In my judgment the Tribunal’s conclusion that it was constrained, notwithstanding suspicion, from making the necessary findings of knowledge against Mr Dempster (necessary that is to permit the consequences of the alleged sham to be visited upon him) was nothing more nor less than a correct and conventional application of that cardinal principle.’
Briggs J
[2008] EWHC 63 (Ch), [2008] STC 2079
Bailii
England and Wales
Citing:
Cited – Snook v London and West Riding Investments Ltd CA 1967
Sham requires common intent to create other result
The court considered a claim by a hire-purchase company for the return of a vehicle. The bailee said the agreement was a sham.
Held: The word ‘sham’ should only be used to describe an act or document where the parties have a common intention . .
Cited – Stone (HM Inspector of Taxes) v Hitch and others CA 26-Jan-2001
As an exception to the general rule, it is not invariably necessary to show, in relation to multi party transactions, that every party to it knew it was a sham.
Arden LJ said: ‘Third, the fact that the act or document is uncommercial, or even . .
Cited – Regina v Commissioners of Customs and Excise ex parte McNicholas Construction Co Ltd Admn 15-Oct-1996
Where there was no real transaction underlying a claim for VAT credit, no VAT credit can be claimed.
Dyson J said: ‘the words ‘to the best of their judgment’ permit the commissioners a margin of discretion in making an assessment; a taxpayer . .
Cited – Ensign Tankers (Leasing) Ltd v Stokes (Inspector of Taxes) HL 6-May-1992
The appellants entered into partnerships with a film production company. By doing so they intended to make available to themselves first year allowances on the capital expenditure incurred. Loan agreements protected them from any eventual loss.
Cited by:
Cited – Abbey Forwarding Ltd v Hone and Others ChD 30-Jul-2010
. .
Cited – London Borough of Haringey v Hines CA 20-Oct-2010
The authority sought rescission of a lease granted to the defendant under the right to buy scheme, saying that she had misrepresented her occupation when applying. The tenant replied that no adequate evidence had been brought that she was not a . .
Lists of cited by and citing cases may be incomplete.
VAT, Contract, Litigation Practice, Natural Justice
Updated: 23 December 2021; Ref: scu.263853
Reference for a preliminary ruling – Harmonization of tax legislation – Common system of value added tax (VAT) – Directive 2006/112 / EC – Right to deduct VAT – Cancellation of the VAT identification of a taxable person – Refusal of right to deduction – Formal conditions
C-358/20, [2021] EUECJ C-358/20, ECLI:EU:C:2021:936
Bailii
European
VAT
Updated: 23 December 2021; Ref: scu.670038
VAT – exemption for provision of services of an insurance broker or agent – whether exemption applies to services provided to facilitate insurance brokers obtaining better terms and related benefits from insurance companies and other insurance related services – Article 135.1(a) Directive 2006/112 EC – Schedule 9 Group 2 Value Added Tax Act 1994
[2014] UKUT 452 (TCC), [2014] STI 3194, [2014] BVC 540, [2015] STC 238
Bailii
England and Wales
VAT
Updated: 22 December 2021; Ref: scu.538015
VAT: Agricultural Flat-rate Scheme – whether the Appellant’s certificate to use the scheme can lawfully be withdrawn on the basis of protection of the revenue – yes; Regulation 206(1)(i) VAT Regulations 1995 and Articles 295 to 302 of Council Directive 2006/112/EC
[2014] UKFTT 944 (TC)
Bailii
England and Wales
VAT, Agriculture
Updated: 22 December 2021; Ref: scu.537683