Category: VAT

Regent Building Services N/C Ltd v Revenue and Customs: VDT 12 Sep 2006

VAT INPUT TAX – MOTOR CARS – Appellant purchased a motor car for use by one of its company directors – the director chose to use the motor car exclusively for the Appellant’s business – the Appellant, however, consigned control of the motor car to the director – the Appellant placed no physical or legal impediment on the use of the car – the Appellant intended the car to be made available for the private use of the director – Appeal dismissed.

Citations:

[2006] UKVAT V19769

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.246122

Purple International Plc v Revenue and Customs: VDT 28 Sep 2006

VALUE ADDED TAX – INPUT TAX – Input tax withheld pending ECJ judgment in Optigen and Others – input tax paid with repayment supplement following release of judgment – whether interest payable in addition – yes – interest rate commercial on borrowers’ rate – interest compounded – rate base plus 2.5% with quarterly rests – no abatement because of repayment supplement – commencement 30 days in respect of first two claims 16 days thereafter -section 84(8) VATA 1994

Citations:

[2006] UKVAT V19795

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.246120

Lumar Developments v Revenue and Customs: VDT 23 Aug 2006

VAT – EXEMPT SUPPLIES – SPORTING SERVICES – The Appellant ran a golf club which purported to transfer the supplies of golfing services to a new company limited by guarantee with a non-profit making aim – the Appellant granted the new company a licence to occupy the golf course in return the Appellant received 95% of the Appellant’s income – the changes introduced were matters of form rather than substance – the new company did not have the resources and the means to provide the golfing supplies – satisfied that the Appellant continued to supply the golfing services – Appeal dismissed – findings of fact made on disputed issues of eligibility and abuse of law but no decision required as they were alternatives to the first disputed issue of who made the supply.

Citations:

[2006] UKVAT V19729

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.244778

Morgan and Another (T/A the Harrow Inn) v Revenue and Customs: VDT 8 Jul 2006

VAT – small businesses flat-rate scheme – public house – bar sales and food sales almost equal but food sales higher – on joining scheme appellants selected ‘Pubs’ as main business claiming that bar sales expected to exceed food sales in following year – food sales continued to exceed bar sales – retrospective change of sector to ‘Restaurants’ by HMRC – whether change reasonable – appeal dismissed
VAT – misdeclaration penalty – whether appellants belief that bar sales would exceed food sales constitutes reasonable excuse – held on facts that there was reasonable excuse until first anniversary of appellants joining scheme – appeal allowed in part

Citations:

[2006] UKVAT V19671

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.244219

Akbars Balti Restaurant Ltd v Revenue and Customs: VDT 5 Sep 2006

VALUE ADDED TAX – restaurant – observation of numbers of customers – whether observations accurate – yes, with some adjustment – calculated meal value – whether realistic – whether calculated takings capable of reconciliation with declarations – conclusion that there was suppression of takings in early period of observation diminishing in later months – assessment adjusted by elimination of two periods – parties left to agree figures for remaining periods – appeal allowed in part

Citations:

[2006] UKVAT V19761

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.246091

Plasma Trading Ltd v Customs and Excise: VDT 17 Jan 2005

Application for appeal to be heard without payment or deposit of tax – whether appeal against an assessment or a decision regarding an amount of input tax to be credited – appeal lodged before any assessment made – whether appellant would suffer hardship – ability to raise necessary funds from those who had financed the transactions giving rise to the dispute

Citations:

[2004] UKVAT V18908

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.222676

United Biscuits (UK) Ltd v Customs and Excise: VDT 22 Feb 2005

VALUE ADDED TAX – snack foods – flavoured Hula Hoops purchased with sachet of additional flavouring – VATA1994 Sch 8, Group 1, Excepted Item 5 – whether addition by consumer of contents of sachet to Hula Hoops amounts to ‘further preparation’ – no – appeal dismissed

Citations:

[2005] UKVAT V18947

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.223186

Shorterm Group Ltd v Customs and Excise: VDT 30 Dec 2004

DEFAULT SURCHARGE – Reasonable excuse – Late payment – Shortage of funds – Appellant factored debts on basis that it could draw down amounts required to pay VAT – Appellant notified debt-factor of intention to draw down but received payment from debt-factor seven minutes late – Appellant unable to meet 3.30pm deadline for payment to Commissioners – Whether delay in receiving payment from debt-factor foreseeable – No – Whether reasonable excuse for late payment of tax – Yes
DEFAULT SURCHARGE – Reasonable excuse – Late payment – Appellant had team of two individuals to arrange electronic transfers – Senior member of team unexpectedly absent on account of son’s illness – Junior member of team failed to activate payment by 3.30pm on the due date – Whether reasonable excuse – Yes

Citations:

[2004] UKVAT V18900

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 13 October 2022; Ref: scu.221133

Commissioners of Customs and Excise v First Choice Holidays Plc: CA 29 Jul 2004

The VAT to be paid by tour organisers on package holidays was to calculated upon the sum charged to the consumer, not the discounted sum charged to the travel agent.

Judges:

Lord Justice Mummery Lord Justice Rix Lord Justice Carnwath

Citations:

[2004] EWCA Civ 1044, Times 07-Oct-2004, [2004] STC 1407, [2004] 3 CMLR 45, [2004] BTC 5676, [2004] STI 1761, [2004] STC 1407, [2004] BVC 735

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Cited – Greenalls Management Ltd v Customs and Excise HL 12-May-2005
Volumes of vodka were transferred from a secure warehouse to a carrier for export. They were diverted, and not exported and the Customs sought the unpaid duty from the warehouse. The Directive provided that duty was payable on the ‘release for . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 October 2022; Ref: scu.199741

South Herefordshire Golf Club v Revenue and Customs: VDT 11 Sep 2006

VAT PROCEDURE: Penalty for alleged breach of directions – Costs order against the Appellants -no breach of directions – no substantive ground to depart from general rule that unsuccessful Appellants should not pay Respondents costs – No order for costs.

Citations:

[2006] UKVAT V19767

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.246124

Jannicke Wallace (T/A the Cornish Pasty) v Revenue and Customs: VDT 28 Sep 2006

VAT- ZERO-RATING – Hot food – pasties baked in oven – some placed in a heated cabinet others placed in wicker baskets and on trays – whether the pasties destined for the heated cabinet were heated for the purpose of enabling them to be consumed hot – satisfied on the evidence that the Appellant’s predominant purpose was to heat them to be consumed hot – Appeal dismissed – Note 3(b) Item 1 Group 1 Schedule 8 VAT Act 1994.

Citations:

[2006] UKVAT V19793

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.246111

Freeley Inns Ltd v Revenue and Customs: VDT 24 Aug 2006

VAT – PENALTIES – default surcharge – reliance on others to ensure compliance with requirements to lodge VAT returns and to pay tax by the due dates – cash-flow difficulties leading to insufficiency of funds to pay tax – lack of reasonable excuse – appeal dismissed

Citations:

[2006] UKVAT V19737

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.246087

Jones (T/A GW Jones Contractors Ltd) v Revenue and Customs: VDT 7 Feb 2006

DEFAULT SURCHARGE – Reasonable excuse – Late payment – Whether Customs had wrongly date stamped the date of receipt – No – Whether earlier overpayments of tax were cause of late payment – No – Whether postal strike delayed receipt of payment – No – Appeals dismissed

Citations:

[2006] UKVAT V19704

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.244647

Portman Escort Agency v Revenue and Customs: VDT 23 Aug 2006

Value Added Tax – whether escort agency’s services were confined to the performance of an agency or introductory function or whether they extended to the full provision, as principal, of the escort services – construction of the contract between the agency and escorts and whether the contract was intended to create legal relations – consideration of whether the facts were consistent with the structure assumed by the contract – Appeal allowed

Citations:

[2006] UKVAT V19728

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.244782

Newcastle United Plc v Revenue and Customs: VDT 21 Aug 2006

VAT – input tax – football club – whether tax on players’ agents fees paid by club its input tax, supplies having been made jointly to club and player by agent or whether not so, supplies having been made exclusively to player – finding that in almost every case supplies made solely to player – alternatively, even if supplies not made agent to Club had it nevertheless right to deduct input tax because it received benefit sufficient to bring it within the Redrow principle – appeal substantially dismissed

Citations:

[2006] UKVAT V19718

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.244656

Halliwell and Another v Revenue and Customs: VDT 23 Aug 2006

VALUE ADDED TAX – do-it-yourself builders’ scheme – relief refused – VATA 1994 s 35, Sch 8 Group 5, Notes (16), (18) – original building substantially demolished but small part of the external wall incorporated in new dwelling – whether retention of wall a requirement of planning consent – no – conditions for recovery of VAT not satisfied – appeal dismissed

Citations:

[2006] UKVAT V19735

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.244774

Cusdin v Revenue and Customs: VDT 24 Aug 2006

VAT – BUILDERS – Do-it-yourself Builders and Converters Scheme – refund of VAT – Aga cooker – whether ‘designed to heat space’ – no – refund not due – whether refund of difference due from HMRC when VAT erroneously paid at 17.5 per cent instead of 5 per cent – no – difference not constituting tax – owner should look to suppliers for refund of difference – appeal dismissed

Citations:

[2006] UKVAT V19739

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.246086

Marguertia Hoare School of Dancing v Customs and Excise: VDT 17 Jan 2005

RECOVERY of sums paid but not due – Appellant partnership provided private dancing lessons – VAT paid at standard rate since 1976 – Deemed entitled to exemption following Clarke (deceased) and Clarke (Decision 15201) – S.80 VATA 1994 consideration – Whether Appellant entitled to rely on Business Brief 22/2002 to claim back VAT from 1978 – Appeal allowed

Citations:

[2004] UKVAT V18906

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.222674

55 North Ltd v Revenue and Customs: VDT 3 Aug 2006

Default Surcharge: Appellant the subject of a series of unfortunate events. Had anticipated and provided adequately for his return and payment to be on time. He overcame many hurdles but his cheque was returned because of early presentation of a direct debit which competed with his cheque to HMRC and both were not met. His unauthorised overdraft would have been pounds 1.44 for one working day only. Appeal allowed.

Citations:

[2006] UKVAT V19680

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.244221

Benchwark Distribution Ltd v Customs and Excise: VDT 23 Apr 2004

VAT – default surcharge – trading difficulties – insufficiency of funds – whether underlying reasons for insufficiency amounted to reasonable excuse – no – appeal dismissed
VAT – procedure – full decision requested after expiry of 14-day time limit – whether appellant prejudiced by time limit – decision issued despite substantial delay

Citations:

[2004] UKVAT V18574

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 12 October 2022; Ref: scu.199078