Category: VAT

Faith Clothing Ltd v Revenue and Customs: VDT 4 Nov 2008

Value Added Tax – Denial of input tax claimed by clothing wholesaler – Contention that the suppliers identified on two sets of invoices had ceased trading such that the supplies cannot have been made by the alleged suppliers – Various different ways of sustaining an entitlement to input tax if the supplies cannot have been made by the apparent registered trader but may still have been made by a taxable person – Failure by Appellant to have undertaken sufficient checks on the identity of the supplier and the limited jurisdiction of the Tribunal to interfere with the exercise of discretion by the Commissioners – Penalty imposed under section 63 VAT Act – Irrelevance of good faith – Appeals in relation to the assessments and the penalty dismissed

Citations:

[2008] UKVAT V20854

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.301844

Kalron Foods Ltd v Revenue and Customs: VDT 24 Aug 2006

VAT – ZERO-RATING – food, etc – whether ‘Zumo Fresh Blend’ a beverage – yes – product consumed as a beverage notwithstanding its status as food – observations as to position where product constitutes both food of a kind used for human consumption and a beverage – product supplied as an excepted item and hence not zero-rated – appeal dismissed

Citations:

[2006] UKVAT V19738

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.246088

MPH Leisure Ltd v Revenue and Customs: VDT 19 Sep 2006

VAT – DATE OF REGISTRATION – TRANSFER OF GOING CONCERN – Appellant took out a lease for ten years in respect of a private members club – the Appellant was not the purchaser of the club – the previous business ceased trading on 4 November 2004 with the Appellant re-opening for business on 5 November 2004 – satisfied no break in trading and no fundamental change in the nature of the business – the Appellant was put in possession of a going concern – Appeal dismissed.

Citations:

[2006] UKVAT V19778

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.246115

Horstead v Revenue and Customs: VDT 9 Aug 2006

VAT – ZERO-RATING – transport – Vauxhall Corsa supplied with automatic transmission, air conditioning and power steering but not otherwise modified for use by a disabled person – whether vehicle designed or substantially and permanently adapted for the carriage of a person in a wheelchair – whether supply should be zero-rated – no – appeal dismissed

Citations:

[2006] UKVAT V19697

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.244597

Senergy (UK) Ltd v Revenue and Customs: VDT 23 Aug 2006

INPUT TAX – Whether there was a genuine trade in golf clubs – Whether Appellant knowingly involved in sham transactions – Whether single event unequivocally indicating fraud necessary for finding trade a sham
INVOICES – Whether invoices comply with requirements of Reg. 29 of VAT Regulations 1995 and/or Article 22(3)(b) of the Sixth Directive – Appeal dismissed

Citations:

[2006] UKVAT V19727

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.244785

TFA Box Company Ltd v Revenue and Customs: VDT 7 Sep 2006

VAT – EC SALES LIST – Appellant contended that it did not receive the penalty liability notice and that the penalty was harsh which caused financial hardship – satisfied the notice was served – no grounds found for reasonable excuse – Appeal dismissed.

Citations:

[2006] UKVAT V19771

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.246126

Intarsia Ltd, Vaughan (T/A the Design Co-Operative) v Revenue and Customs: VDT 15 Sep 2006

VAT ASSESSMENT – Appellants supplying design services to a company controlled by the owner of the Appellants – Respondent’s assessment on draft accounts supplied by the Appellants – satisfied that the Appellants’ accountant assured the Respondents that there would be no material alterations to the draft accounts – replacement returns inaccurate – Appellants have failed to satisfy the Tribunal on the balance of probabilities that the assessments were incorrect – Appeal dismissed.

Citations:

[2006] UKVAT V19772

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.246110

Begum Eastern Ocean Ltd v Revenue and Customs: VDT 28 Jun 2006

REGISTRATION – Transfer of business as a going concern – Transferor business compulsorily registered for VAT – No appeal by transferor – Transferee business a limited company- No evidence or notification of transfer supplied by Appellant to Commissioners at time of transfer – Kenmir Ltd v Frizzell applied – Appeal dismissed

Citations:

[2006] UKVAT V19633

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.243261

Southlong East Midlands Ltd v Customs and Excise: VDT 22 Feb 2005

ZERO RATING – First grant of major interest of building – Listed building – Substantial reconstruction – Building in poor state, long unoccupied Works carried out – Demolition of one part; small extension; internal reorganisation of rooms – Whether ‘substantial reconstruction’ – No VATA 1994, Sch 8, Group 6, Item 1, Note (4)

Citations:

[2005] UKVAT V18948

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 October 2022; Ref: scu.223185

Jacobs v Customs and Excise: VDT 13 Feb 2004

A developer sought to set off input taxes paid in the redevelopment of a former residential boarding school as a family home.
Held: The taxpayer’s appeal succeeded.

Citations:

[2004] UKVAT V18489

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal from – Commissioners of Customs and Excise v Jacobs ChD 22-Oct-2004
. .
At VAT Tribunal – Revenue and Customs v Jacobs CA 22-Jul-2005
The taxpayer had converted a former residentional boarding school into a substantial private residence. He had sought to claim over andpound;300,000 VAT inputs. The Commissioners appealed the finding that he was so entitled.
Held: ‘works . .
Lists of cited by and citing cases may be incomplete.

VAT, Construction

Updated: 11 October 2022; Ref: scu.195300

Zipvit Ltd v Revenue and Customs: SC 1 Apr 2020

This case is concerned with the right of a trader (in this case, Zipvit) to deduct input VAT due or paid by it on supplies of services to it by a supplier (in this case, Royal Mail), so far as those supplies are used for the trader’s own supplies of goods or services to an ultimate consumer.
Held: Question referred to the ECJ

Judges:

Lord Hodge, Lady Black, Lord Briggs, Lord Sales, Lord Hamblen

Citations:

[2020] UKSC 15

Links:

Bailii, Bailii Summary, SC, SC Summary, SC Summary Video, SC 2020 Jan 19 am Video, SC 2020 Jan 29 pm Video, SC 2020 Jan 30 am Video, SC 2020 Jan 30 pm Video

Jurisdiction:

England and Wales

Citing:

At UTTC – Zipvit Ltd v Revenue and Customs UTTC 27-Jun-2016
UTTC VALUE ADDED TAX – Is the appellant entitled to recover VAT input tax in respect of MailmediaR supplies to it from Royal Mail, notwithstanding that Royal Mail did not in fact pay VAT on those supplies, the . .
At FTTTx – Zipvit Ltd v Revenue and Customs FTTTx 3-Jul-2014
FTTTx VAT – supply of individually negotiated postal services treated by all parties as exempt from VAT – customer seeking to reclaim input VAT on supply from HMRC – whether services standard rated under . .
At CA – Zipvit Ltd v Revenue and Customs CA 29-Jun-2018
. .

Cited by:

SC Reference – Zipvit ECJ 13-Jan-2022
Reference for a preliminary ruling – Common system of value added tax (VAT) – Directive 2006/112/EC – Article 168 – Right of deduction – Supply of postal services mistakenly exempted – VAT deemed to be included in the commercial price of the supply . .
SC (1) – Zipvit Ltd v Revenue and Customs (Respondent) (No 2) SC 11-May-2022
The court considered the right of a trader to deduct input VAT due or paid by it on supplies of services to it by a supplier (RM), so far as those supplies are used for the trader’s own supplies of goods or services to an ultimate consumer. Z used . .
Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 11 October 2022; Ref: scu.649487

HM Revenue and Customs v Pendragon: UTTC 15 Mar 2012

UTTC VALUE ADDED TAX – margin scheme for second-hand goods – arrangement by which motor dealer raised finance and became able to sell demonstrator cars within margin scheme – whether abusive – yes – appeal allowed

Judges:

Morgan J

Citations:

[2012] UKUT 90 (TCC)

Links:

Bailii

Statutes:

First Council Directive on VAT, 67/227/EEC 2

Jurisdiction:

England and Wales

Citing:

Appeal from – Pendragon Plc and Others v Revenue and Customs FTTTx 31-Jul-2009
FTTTx VAT- financing involving sale of business – Abuse? No financing transaction as going concern which gave margin treatment – Appeal allowed . .

Cited by:

Appeal from – Pendragon Plc and Others v HM Revenue and Customs CA 23-Jul-2013
The Revenue had imposed a penalty on the appellants saying that their arrangement for the sale and VAT taxation of demonstrator cars was, in European law terms. The taxpayer sought re-instatment of the First Tier Tribunal judgment in its favour.
At UTTC – 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.

VAT

Updated: 07 October 2022; Ref: scu.452895

Sally Moher At Premier Dental Agency v HMRC: UTTC 27 Mar 2012

UTTC VALUE ADDED TAX – exemptions – appellant engaged dental nurses and supplied them as temporary staff to dentists – whether appellant made supplies of staff or of medical treatment – supplies of staff – supplies standard-rated – appeal dismissed

Citations:

[2012] UKUT B2 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 October 2022; Ref: scu.452896

Vlaamse Oliemaatschappij v FOD Financien: ECJ 21 Dec 2011

ECJ Sixth VAT Directive – Persons liable to pay tax – Third party jointly and severally liable – Warehousing arrangements other than customs warehousing – Joint and several liability of the warehouse-keeper of the goods and the taxable person who owns the goods – Good faith or lack of fault or negligence of the warehouse-keeper

Citations:

C-499/10, [2011] EUECJ C-499/10

Links:

Bailii

European, VAT

Updated: 07 October 2022; Ref: scu.452819

Genry v Revenue and Customs: VDT 16 Jan 2009

VAT – ASSESSMENT – FLAT RATE SCHEME – The Respondents refused authorisation of flat rate scheme – Appellant continued to use flat rate scheme to compute his VAT liability – assessments raised to recover the excess VAT – Appellant contended refusal unreasonable – refusal based on Appellant’s poor compliance record – Tribunal jurisdiction limited to reasonableness of Respondents’ refusal – decision reasonable – Appeal dismissed

Citations:

[2009] UKVAT V20929

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 October 2022; Ref: scu.301723

Reynolds v Revenue and Customs: FTTTx 21 Jan 2010

FTTTx VALUE ADDED TAX – flat rate scheme – Appellant’s VAT liability greater under flat rate scheme than under standard VAT arrangements – application to withdraw retrospectively – application refused – reasonableness of HMRC decision – section 84(4ZA) VAT Act – appeal denied.

Citations:

[2010] UKFTT 40 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 October 2022; Ref: scu.408905

Dear v Revenue and Customs: FTTTx 10 Mar 2010

FTTTx VALUE ADDED TAX – 3 year cap – Repayment overpayment VAT requested more than three years after the end of the prescribed period in which assessment made – s.80(4) Value Added Tax Act 1994 considered
INFLATED ASSESSMENT REGIME – Implications considered – s.73(8) Value Added Tax Act 1994

Citations:

[2010] UKFTT 111 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 October 2022; Ref: scu.408955

Pinevale Ltd v Revenue and Customs: FTTTx 27 Sep 2012

Value Added Tax – Reduced rate supply – Energy saving materials – Insulation for roofs – Polycarbonate panels for conservatories – Panels supplied to create new roof – Panels supplied to replace existing panels – Radiation reflector strips installed in existing panels – Whether energy saving materials comprising insulation for roofs – Appeal allowed- VATA 1994 Schedule 7A Group 2

Citations:

[2012] UKFTT 606 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 October 2022; Ref: scu.466183

Chan v Revenue and Customs: FTTTx 22 Feb 2012

FTTTX VAT – Regulation 34 VAT Regulations 1995 – whether Appellant could recover VAT deliberately overpaid in earlier period by adjusting subsequent returns without making voluntary disclosure – no – HMRC’s assessment also subject to time limits under Schedule 39 Finance Act 2008 – overpaid tax not recoverable

Judges:

Connell TJ

Citations:

[2012] UKFTT 155 (TC)

Links:

Bailii

Statutes:

Finance Act 2008 39

VAT

Updated: 05 October 2022; Ref: scu.451953

Roderick Gunkel and Associates Ltd v Revenue and Customs: FTTTx 16 Nov 2009

Input tax – claim for deduction of VAT in respect of goods and services supplied for premises used as office and domestic accommodation and partially used by directors – VAT Act 1994 Section 24(3) – Appeal allowed.
Input tax – claim for deduction of VAT in respect of relocation costs – whether goods and services supplied were for the purposes of the business – VAT Act 1994 Section 24(1) – Appeal allowed.
Whether indirect taxes such as VAT and direct taxes such as Income Tax should apply the same rules and tests in relation to reliefs and claims to deduction of tax – Appeal dismissed.

Citations:

[2009] UKFTT 308 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.409125

Sloan v Revenue and Customs: FTTTx 18 Nov 2009

VAT – Notice of Assessment – Appellant contractor – underdeclaration of output tax revealed upon investigation – Notice of Assessment – taxpayer claims use of sub-contractors to whom payments made – payments in cash – invoices produced – irregularities in form – absence of receipts – absence of other proofs of payment – Appellant claims entitlement to input tax – Whether or not assessment made to best judgment -Value Added Tax Act 1994 s 24[6] – VAT Regulations 1995 Regs 13, 14[1] and 29[2] – appeal dismissed

Citations:

[2009] UKFTT 310 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.409127

Moorbury Ltd v Revenue and Customs: FTTTx 21 Jul 2009

FTTTx VALUE ADDED TAX – educational institution entering into scheme for recovery of input tax – scheme conceded to be abusive – redefinition in accordance with Halifax principles – whether Commissioners required to undertake complete redefinition or taxpayer required to make claim for credit – VATA 1994 ss 73, 80 – taxpayer failing to make s 80 claim – complete redefinition required – appeal allowed.

Citations:

[2009] UKFTT 180 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.409007

Health Response UK v Revenue and Customs: FTTTx 19 Mar 2010

FTTTx Value Added Tax – whether the Appellant rendered one composite service, or two or more distinct services – whether the service, if one composite service, was of medical services – whether the Appellant company was treated, by Note 2 to Group 9 of Schedule 5 to VAT Act 1994, as being amongst the category of persons whose medical services might rank as exempt services – complaints about misdirection by HMRC officers – Appeal allowed

Citations:

[2010] UKFTT 123 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.408963

Major Micros Ltd v Revenue and Customs: FTTTx 10 Mar 2010

FTTTx Value Added Tax – Repayment supplement – VATA 1994 s.79 – Period between submission of return and repayment exceeding 30 days – Whether supplement due – Commissioners stated believed Appellant not involved in fraud – At time Commissioners wrongly believed any participant in a fraudulent chain could not reclaim input tax because no economic activity – Whether that belief showed that Commissioners’ enquiries not reasonable – appeal dismissed.

Citations:

[2010] UKFTT 105 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.408964

HJ Banks and Company Ltd v Revenue and Customs: FTTTx 14 Jan 2010

VALUE ADDED TAX – PARTIAL EXEMPTION – Input tax recovered on purchase of land and buildings which were used for making of taxable and exempt supplies – did the attribution of input tax under the standard method reflect the use to which the land and buildings were put – No – did the standard method over-ride apply – Yes – did a method of attribution based upon site area provide a fair and reasonable proxy for use – Yes – Appeal dismissed

Citations:

[2010] UKFTT 33 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.408889

Infinity Distribution Ltd (In Administration) and Revenue and Customs: UTTC 30 Dec 2019

VAT – (1) HMRC barred from taking part in appeal against denial of input tax credit on purchases – need to prove underlying supply in order to claim input tax – decisions in Mahageben and Stroy trans considered – barring order set aside – (2) HMRC not barred from taking part in appeal against denial of zero-rating – need for sufficient evidence of export in order to obtain zero-rating – Teleos considered – appeal against decision not to bar dismissed.

Citations:

[2019] UKUT 405 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.646063

Metropolitan International Schools Ltd, Regina (on Application of) v Revenue and Customs: UTTC 30 Dec 2019

JUDICIAL REVIEW – HMRC and taxpayer agreeing method for determining proportion of taxpayer’s supplies that were standard-rated – HMRC exercise power to withdraw method – whether taxpayer had a legitimate expectation that arrangement would continue – permission to bring judicial review refused.

Citations:

[2019] UKUT 407 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.646064

Target Group Ltd v Revenue and Customs: UTTC 15 Nov 2019

VAT – whether supplies of loan administration services made by appellant to a bank are exempt – Article 135(1)(d) PVD – Items 1 and 8 Group 5 Schedule 9 VATA – whether loan accounts are current accounts – whether services are transactions concerning payments or transfers – whether services are debt collection – appeal dismissed.

Citations:

[2019] UKUT 340 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.646062

Guzel (T/A Can Supermarket) v Revenue and Customs: FTTTx 7 May 2014

VAT – estimated assessments – s 73 VATA 1994 – best judgment – 64% suppression of takings estimated-available evidence – hidden till records – penalties based on dishonesty – Held – HMRC exercised best judgment- no other basis on which better assessment could be made – appeal dismissed – penalties upheld.

Citations:

[2014] UKFTT 431 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.526823

Thomas Motors Ltd v Revenue and Customs: FTTTx 1 Apr 2014

VAT – the respondents’ discovery assessment in the sum of pounds 28,180.17 arising from a fleming motor margin claim of pounds 239,277 VAT and pounds 430,282 statutory interest and totalling pounds 665,849 received by the appellant – the respondents did not accept that there had been any car sales in the year 1990 as originally agreed – the appellant alleged that it was running down its stock in that year – no evidence of such car sales – case dismissed.

Citations:

[2014] UKFTT 324 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 October 2022; Ref: scu.525390

TG van Laarhoven v Staatssecretaris van Financien: ECJ 16 Feb 2012

ECJ Sixth VAT Directive – Right to deduct input tax – Limitation – Use of goods forming part of the assets of a business for the private use of the taxable person – Fiscal treatment of private use of goods that are assets of the business.

Judges:

Lenaerts P

Citations:

C-594/10, [2012] EUECJ C-594/10

Links:

Bailii

European, VAT

Updated: 05 October 2022; Ref: scu.451699

Varzim Sol – Turismo, Jogo e Animacao SA v Fazenda Publica: ECJ 16 Feb 2012

ECJ Taxation – Sixth VAT Directive – Deduction of input tax – Article 17(2) and (5) and Article 19 – ‘Subsidies’ used for the purchase of goods and services – Restriction of the right to deduct

Judges:

Prechai P

Citations:

C-25/11, [2012] EUECJ C-25/11

Links:

Bailii

Jurisdiction:

European

European, VAT

Updated: 05 October 2022; Ref: scu.451700

SHS International Ltd v Revenue and Customs: FTTTx 16 Feb 2012

FTTTx CUSTOMS DUTIES – tariff classification – post-clearance demand note in sum of andpound;427,903.36 and VAT of andpound;70,028.26 – amino acid premixes imported from USA – whether to be classified as medicaments (Chapter 30) or food preparations (Chapter 21) – product to be classified under Chapter 30 as medicaments.

Citations:

[2012] UKFTT 134 (TC)

Links:

Bailii

Customs and Excise, VAT

Updated: 05 October 2022; Ref: scu.451989

Lookers Motor Group Ltd (T/A Ellesmere Port Division And Other Divisions) and Another v Revenue and Customs: FTTTx 19 Aug 2009

VAT – private use of cars by employees of motor dealer – market value direction Schedule 6 paragraph 1A VAT Act – effect of pre-payment occurring before enactment of power to direct – direction limited to periods after enactment – time of supply – appeal dismissed.

Citations:

[2009] UKFTT 215 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 October 2022; Ref: scu.409029

Dada Records Ltd v Revenue and Customs: FTTTx 2 Sep 2009

REQUIREMENT FOR SECURITY – Notice of requirement for security for tax – Whether material not referred to by Commissioners in making decision – Whether decision would inevitably have been the same – Appeal allowed – VAT Act 1994 Sch 11 para 4(2)(a)]

Citations:

[2009] UKFTT 251 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 October 2022; Ref: scu.409046

Macmahon (T/A Irish Cottage Trading Company) v Revenue and Customs: FTTTx 11 Nov 2009

VAT – ZERO – RATING – Forty seven supplies of goods to a trader in Spain – the supplies formed part of a scheme of tax avoidance – Appellant did not know about the tax avoidance — No persuasive evidence that the goods left the UK — No commercial documentation evidencing removal (some of which were forgeries) — Appellant did not take every precaution reasonably required in respect of the forty three supplies in quarters 03/06, 06/06, and 09/06. — Appellant took every precaution reasonably required in respect of the four supplies in quarters 06/05 and 12/05 — Appeal allowed in part

Citations:

[2009] UKFTT 304 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 October 2022; Ref: scu.409113

MBC Trading Ltd and Another v Revenue and Customs: FTTTx 17 Dec 2009

Value Added Tax – Input tax – Whether fraud – Whether MTIC fraud – Both Appellants dealers in computer chips – Blue Sphere Global Ltd and Red 12 Ltd considered – Whether evidence of circularity of funds must be linked to circularity of goods – Whether possible to infer importation from EU – Appeals dismissed

Citations:

[2009] UKFTT 372 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 October 2022; Ref: scu.409161