Thorn EMI Plc v Customs and Excise Commissioners: CA 5 Jun 1995

VAT on services for business and entertainment is apportionable between them.

Citations:

Ind Summary 05-Jun-1995, Gazette 07-Jun-1995

Statutes:

VAT (Special Provisions) Order 1981

Jurisdiction:

England and Wales

Citing:

Appeal fromThorn EMI Plc v Customs and Excise Commissioners QBD 20-Jun-1994
Supplies for mixed business entertainment and other uses are to be apportioned. . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 21 January 2023; Ref: scu.89879

John Dee Ltd v Commissioners of Customs and Excise: CA 20 Jul 1995

There was no ‘fresh discretion’ power in the VAT tribunal on appeal if Commissioner’s decision flawed.

Citations:

Times 20-Jul-1995

Statutes:

Value Added Tax Act 1983 40(1)(n)

Jurisdiction:

England and Wales

Citing:

Appeal fromJohn Dee Ltd v Commissioners of Customs and Excise QBD 17-Feb-1995
VAT Tribunal has an appellate not a supervisory jurisdiction – no re-hearing. . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 21 January 2023; Ref: scu.82533

Reaney (T/A Armagh Marble) v Revenue and Customs (VAT – Appeal from Assessment): FTTTx 10 Jun 2020

VAT-Appeal against assessment-Zero-rating of goods on the basis that they were acquired in another Member State by a person liable for VAT on the acquisition-Requirements for zero rating not met-Whether Appellant required to account for the VAT

Citations:

[2020] UKFTT 252 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 31 December 2022; Ref: scu.652293

Stonypath Developments Ltd v Revenue and Customs (VAT – Appeal from Assessment In Respect of Disallowed Input Tax): FTTTx 9 Jun 2020

VAT-Appeal against assessment in respect of disallowed input tax-Whether supplies had been paid for within 6 months or at all (s 26A VATA)-Whether input tax should have been allowed in the absence of a VAT invoice (reg 29 VAT Regulations)

Citations:

[2020] UKFTT 251 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 31 December 2022; Ref: scu.652294

Fuller v Revenue and Customs (VAT : DIY Builders : Planning Permission for House and Garage): FTTTx 10 Feb 2020

VAT – DIY Builders – planning permission for house and garage – house occupied 2010 – planning permission amended 3 January 2019 to omit garage – completion certificate issued 4 January 2019 – application for refund dated 4 January 2019 rejected by HMRC as out of time – appeal allowed as building project not completed until amended planning permission issued

Citations:

[2020] UKFTT 173 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 31 December 2022; Ref: scu.651561

Seath v Revenue and Customs (VAT – Sole Proprietor With More Than One Business): FTTTx 9 Aug 2019

VAT – sole proprietor with more than one business – total turnover for all businesses for VAT registration – time limits for claims – Leeds City Council applied – Jurisdiction of Tribunal – appeal dismissed – INCOME TAX – Discovery assessments – timing and competency – HMRC discharged burden of proof – onus of proof for quantum on appellant – HMRC’s conduct prior to appeal not within jurisdiction of Tribunal – PENALTIES -deliberate and not careless – appeal dismissed

Citations:

[2019] UKFTT 525 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 20 December 2022; Ref: scu.641354

House T/A P and J Autos v Customs and Excise Commissioners: CA 20 Oct 1995

A global assessment to VAT over several periods made by the Commissioners was not invalid just because separate assessments were also possible.

Citations:

Gazette 27-Mar-1996, Gazette 08-Nov-1995, Times 20-Oct-1995, Ind Summary 13-Nov-1995

Jurisdiction:

England and Wales

Citing:

Appeal fromHouse (T/A P and J Autos) v Commissioners of Customs and Excise QBD 7-Jan-1994
A VAT assessment issued by the Commissioners may cover several periods if the figures are calculable. . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 20 December 2022; Ref: scu.81493

Planet Ice (Milton Keynes) Ltd and Another v Revenue and Customs (Value Added Tax – Package of Supplies of Admission To Ice Skating Rink and Hire of Children’S Ice Skates): FTTTx 27 Aug 2020

VALUE ADDED TAX – package of supplies of admission to ice skating rink and hire of children’s ice skates – whether single standard rated supply or multiple supplies – remittal by Upper Tribunal to find further facts about the options available to purchasers of the package and to reconsider decision at earlier hearing – on basis of facts so found, held that there were two separate supplies – appeals allowed.

Citations:

[2020] UKFTT 517 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 20 December 2022; Ref: scu.661795

HM Revenue and Customs v Weald Leasing Ltd: ChD 16 Jan 2008

Judges:

Lindsay J

Citations:

[2008] EWHC 30 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

CitedHalifax plc etc v Commissioners of Customs and Excise ECJ 21-Feb-2006
ECJ Sixth VAT Directive – Article 2(1), Article 4(1) and (2), Article 5(1) and Article 6(1) – Economic activity – Supplies of goods – Supplies of services – Abusive practice – Transactions designed solely to . .
Appeal fromWeald Leasing Ltd v Revenue and Customs VDT 6-Feb-2007
VDT VAT – AVOIDANCE – Abuse of rights – Appellant associate of exempt trader purchasing assets to lease to separate company to lease on to exempt trader – Associate outside VAT group – Associate credited with . .

Cited by:

Reference fromWeald Leasing (Taxation) ECJ 26-Oct-2010
ECJ Opinion – Value added tax (VAT) – Sixth Council Directive 77/388/EEC – Concept of ‘abusive practice’ and ‘normal commercial operations’ – Transaction designed solely to obtain a tax advantage – Leasing and . .
Reference fromHM Revenue and Customs v Weald Leasing (Taxation) ECJ 2-Dec-2010
ECJ Sixth VAT Directive – Concept of ‘abusive practice’ – Leasing transactions effected by a group of undertakings to spread the payment of non-deductible VAT . .
Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 09 December 2022; Ref: scu.263645

United Utilities Plc v Commissioners of Customs and Excise: ChD 2002

Agents supplied facilities used for a telephone betting company. The services did not include the taking of any money or the settling of odds or otherwise.
Held: The services were not exempt.

Judges:

Ferris J

Citations:

[2003] STC 223, [2002] EWHC 2811 (Ch)

Jurisdiction:

England and Wales

Citing:

Appealed toUnited Utilities Plc v Commissioners of Customs and Excise CA 8-Mar-2004
The taxpayer offered telephone gambling services through a local agent who did not accept money or set any odds.
Held: The services of the agents were administrative only, and not gambling services. There could be no principle to say that a . .

Cited by:

Appeal fromUnited Utilities Plc v Commissioners of Customs and Excise CA 8-Mar-2004
The taxpayer offered telephone gambling services through a local agent who did not accept money or set any odds.
Held: The services of the agents were administrative only, and not gambling services. There could be no principle to say that a . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 09 December 2022; Ref: scu.200441

Miskin, Miskin v St John Vaughan: SCCO 18 Sep 2002

The claimants resisted an order to pay the VAT element awarded on the defendant’s legal costs. The revenue had been unable to state clearly whether the defendant would be able to recover VAT, in which case it would not be payable, or the reverse. It had at the same time become clear that costs had been invoiced to the insurers, and the claimant challenged a liability to the defendant when the bill had not been addressed to him.
Held: Costs could be claimed even if they may in fact be paid by a third party. Although the insurance company had taken over the claim, the indemnity principle had not been infringed, because the party would not look only to the insurers to pay their costs. VAT was not payable to a party who could recover their VAT as input tax. The party no longer existed, and was no longer registered for VAT. The insurers had however paid part of the VAT, and it was properly recoverable.

Judges:

Master Campbell, Costs Judge

Citations:

[2002] EWHC 9007 (Costs)

Links:

Bailii

Statutes:

Costs Practice Direction 43 5.3

Jurisdiction:

England and Wales

Citing:

CitedDavies v Taylor (No 2) HL 2-Jan-1974
The plaintiff argued that no costs had been incurred by the successful defendant, as he was insured, and the insurance company was bound to pay his costs.
Held: ‘In this case the solicitors, no doubt first instructed by the insurance company, . .
CitedRegina v Miller and Glennie; Miller v- Glennie 1983
The question was whether or not the litigants had incurred liability for costs in cases in which they had been supported by their employer.
Held: Where the solicitor is on the record for the client in the litigation, there is a rebuttable . .
Lists of cited by and citing cases may be incomplete.

Costs, VAT

Updated: 09 December 2022; Ref: scu.175483

The Prudential Assurance Company Ltd v Revenue and Customs (VAT – Supply of Investment Management Services Within Vat Group): FTTTx 26 Feb 2021

VAT – Supply of investment management services within VAT group – supplier leaving the group – performance fees attributable to services provided while member of the VAT group – invoiced in years following cessation of group membership – whether liable to VAT

Citations:

[2021] UKFTT 50 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 December 2022; Ref: scu.661772

Vale Europe Ltd v Revenue and Customs (VAT – Input Tax : Other): FTTTx 9 Nov 2018

VAT – Whether fraudulent tax loss – Whether appellant’s transactions connected to such loss – Whether appellant knew or should have known of any such connection – No – Appeal allowed
VAT – Misdeclaration penalty – Whether understatement of liability to VAT in returns – No – Appeal allowed

Citations:

[2018] UKFTT 662 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 December 2022; Ref: scu.632418

Ahmad and Another v Revenue and Customs (Appeals v Assessments and Penalties – Requirements for The Contents of Witness Statements): FTTTx 7 Nov 2019

VAT – appeals against assessments and penalties- requirements for the contents of witness statements to be in witness’ own words considered- restaurants and zero rated supply of cold food – fabricated invoices – best judgement – Khan v Commissioners for HM Revenue and Customs [2006] EWCA Civ 89 and Pegasus Birds Ltd v Commissioners of HM Revenue and Customs [2004] EWCA Civ 1015 considered and applied. Appeals dismissed.

Citations:

[2019] UKFTT 682 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 December 2022; Ref: scu.646876

Blv Wohn-Und Gewerbebau Gmbh v Finanzamt Ludenscheid: ECJ 13 Dec 2012

ECJ Taxation – Sixth VAT Directive – Decision 2004/290/EC – Manner in which a Member State applies a derogating measure – Authorisation – Article 2, point (1) – ‘Construction work’ – Interpretation – Supplies of goods covered – Possibility for the derogating measure to be applied only in part – Restrictions

Citations:

C-395/11, [2012] EUECJ C-395/11

Links:

Bailii

Statutes:

Decision 2004/290/EC

Jurisdiction:

European

VAT

Updated: 07 December 2022; Ref: scu.468762

Conservatory Roofing Systems Ltd v Revenue and Customs (Value Added Tax – Reduced Rate Supply – Energy Saving Materials): FTTTx 21 Dec 2020

VALUE ADDED TAX – reduced rate supply – energy saving materials – whether appellant’s roof insulation system a supply of insulation in roofs within VATA 1994 Schedule 7A Group 2 – no – appeal dismissed

Citations:

[2020] UKFTT 506 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 December 2022; Ref: scu.661803

The Advocate General (Representing Revenue and Customs) v K E Entertainments Ltd: SC 24 Jun 2020

The question on this appeal is whether a bingo promoter is entitled to a refund of Value Added Tax (‘VAT’) paid to the Commissioners of Her Majesty’s Revenue and Customs (‘HMRC’) over many years on fees charged to customers for the right to play bingo.

Judges:

Lord Reed, President, Lord Hodge, Deputy President, Lord Lloyd-Jones, Lord Sales, Lord Leggatt

Citations:

[2020] UKSC 28

Links:

Bailii, Bailii Summary

Jurisdiction:

Scotland

VAT

Updated: 06 December 2022; Ref: scu.651924

Slaymark and Another v Revenue and Customs (VAT : Opted Property): FTTTx 15 May 2020

VAT – opted property – occupied by four businesses in succession – no rent paid – whether obligation to pay – whether expectation that payment would be made – held, no -input tax on expenses claimed on final VAT return disallowed by HMRC – that decision upheld and appeal dismissed

Citations:

[2020] UKFTT 223 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.651609

Jupiter Asset Management Group Ltd v Revenue and Customs (Procedure : Other): FTTTx 25 Jan 2019

PROCEDURE – application for issue of whether ‘open market value’ in Article 72 of the Principal VAT Directive and section 19 VAT Act 1994 is synonymous with ‘arm’s length price’ for transfer pricing purposes to be determined as preliminary issue – whether Wrottesley v HMRC applies – application refused

Citations:

[2019] UKFTT 56 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.635669

McBraida Plc v Revenue and Customs (VAT – Zero-Rating : Transport): FTTTx 22 Jan 2019

VALUE ADDED TAX – zero-rating under paragraph 2A of Group 8 to Schedule 8 of the Value Added Tax Act 1994 for supplies of aircraft engine parts – whether the Appellant has sufficient evidence to establish that the conditions for zero-rating under that provision have been met – yes, in relation to some of the supplies but not all of them

Citations:

[2019] UKFTT 43 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.635672

Contentisking Ltd v Revenue and Customs (VAT – Penalties : Reasonable Excuse): FTTTx 28 Jan 2019

VALUE ADDED TAX – default surcharge – whether failure to pay VAT on time as a result of being unaware of a same day transfer limit applied by the Appellant’s bank amounts to a reasonable excuse – no – whether penalty disproportionate – no – appeal dismissed

Citations:

[2019] UKFTT 64 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.635660

HM Revenue and Customs v Begum and Others: ChD 15 Jul 2010

The Commissioners claim was founded in an alleged conspiracy from a ‘missing trader intra-community fraud’ amounting to andpound;96 million.
Held: Section 423 had extra territorial effect.

Judges:

David Richards J

Citations:

[2010] EWHC 1799 (Ch), [2011] BPIR 59

Links:

Bailii

Statutes:

Insolvency Act 1986 423

Jurisdiction:

England and Wales

Citing:

CitedRegalway Care Ltd v Shillingford and others ChD 25-Feb-2005
Applications to vary freezing order. Blackburne J set out a description of the workings of missing trader intra-community VAT carousel frauds. . .

Cited by:

CitedBilta (UK) Ltd and Others v Nazir and Others ChD 30-Jul-2012
The company was said to have engaged in a fraud based on false European Trading Scheme Allowances, and had been wound up by the Revenue. The liquidators, in the company name, now sought recovery from former directors and associates.
Held: The . .
Lists of cited by and citing cases may be incomplete.

Torts – Other, VAT, Insolvency, Jurisdiction

Updated: 06 December 2022; Ref: scu.420810

Just Fabulous (UK) Ltd, Regina (On the Application of) v Revenue and Customs: Admn 15 Mar 2007

All three claims arise out of the fact that the Revenue has not paid sums claimed by them as due in their VAT returns: JF claimed repayment of VAT totalling pounds 19.5 million in respect of their VAT returns for March, April and May 2006, relating to their acquisition of mobile phones from four suppliers; Evolution claimed total repayment of VAT of pounds 30.3m in VAT returns in January, February and March 2006, with regard to mobile phone transactions relating to seven suppliers including Blackstar UK Ltd (‘Blackstar’); Brayfal claimed repayment of VAT in the sum of pounds 914,000, in their March 2006 VAT return, again in respect of the acquisition of mobile phones, in their case all from one supplier, Future Communications Ltd

Judges:

Burton J

Citations:

[2007] EWHC 521 (Admin), [2007] BVC 490, [2007] BTC 5522, [2008] STC 2123, [2007] STI 542

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.331105

Leander International Pet Foods Ltd (T/A Arden Grange) v The Commissioners of Customs and Excise: VDT 17 Oct 2003

EXEMPTION – Land – Supplies of kennel facilities – Quarantine and non-quarantine facilities – Whether supplies of kennels are supplies of land – No – Whether supplies of kennels are ancillary or incidental to quarantine supplies of detention with isolation and care – Yes – Whether supplies of kennels are ancillary or incidental to non-quarantine supplies of care and safe keeping – Yes – VATA 1994 Sch 9, Gp 1, item 1

Citations:

[2003] UK V18870

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 06 December 2022; Ref: scu.221313

Revenue and Customs v Royal Opera House Covent Garden Foundation:: UTTC 22 Apr 2020

VAT – Partial exemption – whether costs of staging productions have a direct and immediate link to taxable supplies of catering and ice creams – no – appeal allowed – Articles 1,168 and173 Principal VAT Directive – ss 24, 25 and 26 VATA 1994

Citations:

[2020] UKUT 132 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 05 December 2022; Ref: scu.651195

HQ Graphics Ltd v Revenue and Customs: FTTTx 11 Apr 2013

FTTTx VAT – INPUT TAX – Article 5 of VAT (Special Provisions) Order 1995 – sale of printing machinery and office equipment to appellant not to be treated as a supply of goods on basis the seller of the machinery and equipment had transferred its business as a going concern to the appellant – appeal dismissed

Citations:

[2013] UKFTT 226 (TC)

Links:

Bailii

VAT

Updated: 05 December 2022; Ref: scu.491861

Abraham v The Director of Border Revenue: FTTTx 16 Apr 2013

FTTTx VAT and Customs Duty – importation of goods from Hong Kong – replacement item for previous purchase of wrong size – was VAT and Customs Duty due – yes- was review decision reasonable – yes – appeal dismissed

Citations:

[2013] UKFTT 233 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT, Customs and Excise

Updated: 05 December 2022; Ref: scu.491849

Wynn Realisation Ltd v Vogue Holdings Inc: CA 24 Mar 1999

Appeal of Wynn Realisations Ltd from an order dismissing the claim of Wynn to 107,250 pounds as being part of the price due but unpaid on the sale of certain land by Wynn to the defendant Vogue Holdings Incorporated. The sum represented the VAT element, the contract expressing the purchase price to be exclusive of VAT. Held; The appeal succeed, and the sum representing VAT was payable. The parties considered that no VAT would be payable or that it could only be payable if the option to tax were taken, but the reason VAT is payable has nothing do with whether or not Wynn opted to tax.
Morritt LJ said: ‘First, VAT, where payable, is charged by reference to the value of the supply which, when in money, is to be taken to be such amount as with the addition of the VAT is equal to the consideration: the price is VAT inclusive. This is apparent from section 19(2) of the 1994 Act. It is for that reason that where VAT is not to be included, the parties normally makes express reference to the fact that the price does not include VAT by reference to a number of formulae, of which ‘exclusive of VAT’ is perhaps the most common.’

Judges:

Morritt, Auld, Clarke LJJ

Citations:

[1999] STC 524, [1999] EWCA Civ 1087, [1999] BTC 5224, [1999] BVC 245

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

CitedMason v Boscawen ChD 18-Dec-2008
The landlord had opted to charge VAT on part of the rent. The tenant fell into arrears and now challenged a notice to quit which included the VAT. The court was asked what constituted ‘rent’ for the purposes of a demand for rent founding a notice to . .
Lists of cited by and citing cases may be incomplete.

Land, VAT

Updated: 05 December 2022; Ref: scu.146002

Bluechipworld Sales and Marketing Ltd v Revenue and Customs (VAT, PAYE and NIC – Requirement To Give Security): FTTTx 22 Nov 2019

VAT, PAYE and NIC – Requirement to give security – Whether decisions ones that could not reasonably have been arrived at – No – Appeals dismissed

Citations:

[2019] UKFTT 705 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT, Income Tax, Taxes – Other

Updated: 04 December 2022; Ref: scu.646879

Thomas (T/A Abacus Construction) v Revenue and Customs: VDT 19 Feb 2009

VDT VALUE ADDED TAX – Requirement for security under para. 4(2)(a), Sch. 11, VATA – no returns made for 10 consecutive VAT periods – Appeal considered in the absence of the Appellant – Held, the requirement had not been shown to be unreasonable – Appeal dismissed

Citations:

[2009] UKVAT V20958

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.346546

Midlands Co-Operative Society Ltd v HM Revenue and Customs: CA 9 Apr 2008

The tax-payer had assigned it’s business to the claimant, and with it the right to reclaim overpaid VAT. The commissioners appealed a finding that the right to claim a refund was assignable.
Held: The appeal failed. The statute would have to have included a prohibition on assignment for one to be in place: ‘It was to be presumed that unless otherwise stated, a right which was created by statute was assignable in the same way as rights created by the general law. There was nothing to exclude the ordinary law that a claim under section 80 might be assigned.’

Judges:

Lady Justice Arden, Lord Justice Wall and Lord Justice Wilson

Citations:

[2008] EWCA Civ 305, Times 22-Apr-2008, [2008] Bus LR 1187

Links:

Bailii

Statutes:

Value Added Tax Act 1994 80

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.266517

HiBT Ltd v Revenue and Customs: VDT 17 Jan 2007

VALUE ADDED TAX – Exemptions – Education – Company in the business of providing educational courses to fee-paying students – Recognition Agreement between company and university – Whether supply of educational courses by company exempt – Whether educational courses supplied by eligible body – Whether company a college of a university – Value Added Tax Act 1994, Sch 9, Group 6, item 1, note (1) – EC Council Directive 77/388, art 13A(1)(i), (2)(a) – appeal allowed

Citations:

[2007] UKVAT V19978

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.249765

Long and Another v Revenue and Customs: FTTTx 28 Jan 2021

VALUE ADDED TAX – DIY Housebuilders’ Scheme – Retrospective Planning Permission obtained after claim for VAT refund submitted -whether work lawful – whether building designed as a dwelling – whether claim valid – Section 35 Value Added Tax Act 1994 – Note 2 of Group 5 in Schedule 8 to Value Added Tax Act 1994 – Regulation 201 Value Added Tax Regulations 1995 – whether the Tribunal can take into account HMRC conduct – appeal dismissed

Citations:

[2021] UKFTT 24 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.661742

Step By Step (Northern Ireland) Ltd v Revenue and Customs (VAT – HMRC Refusal of Application To Cancel VAT Registration): FTTTx 24 Feb 2021

VAT – HMRC refusal of application to cancel VAT registration – whether supplies made in restaurant were closely related to exempt supplies of education – held yes – decision to refuse to cancel registration unreasonable – appeal allowed

Citations:

[2021] UKFTT 52 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.661777

Flood v Revenue and Customs (Value Added Tax – Appellant Registered for Vat Between August 2014 and June 2015 But Continued Trading): FTTTx 8 Feb 2021

VALUE ADDED TAX – Appellant registered for VAT between August 2014 and June 2015 but continued trading below threshold after de-registration – error correction claim made in November 2019 in respect of 46 payments made between September 2014 and December 2015 – claim made out of time for 44 payments made before December 2015 – no VAT invoices or other evidence to show the two payments in December 2015 were attributable to a taxable supply made while still VAT registered – appeal dismissed

Citations:

[2021] UKFTT 37 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.661758

Knightsbridge Accountants Ltd v Revenue and Customs (VAT – Assessment To Recover Disallowed Input Tax): FTTTx 9 Feb 2021

VAT – assessment to recover disallowed input tax – section 24 of the Value Added Tax Act 1994 and regulations 13 and 14 of the Value Added Tax Regulations 1995 – whether input tax correctly disallowed – yes – appeal dismissed

Citations:

[2021] UKFTT 39 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 30 November 2022; Ref: scu.661765

Commission v Poland: ECJ 4 Jun 2015

ECJ Judgment – Failure to fulfill obligations – VAT -Directive 2006/112 / EEC – Annex III – Application of a reduced rate of VAT to medical equipment, auxiliary equipment and other devices as well as pharmaceutical products

Citations:

C-678/13, [2015] EUECJ C-678/13, ECLI:EU:C:2015:358

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 30 November 2022; Ref: scu.547692

Commission v United Kingdom: ECJ 4 Jun 2015

ECJ Judgment – Failure of a Member State to fulfil obligations – Common system of value added tax – Directive 2006/112/EC – Article 98(2) – Category (10) of Annex III – Reduced rate of VAT applicable to the provision, construction, renovation and alteration of housing, as part of a social policy – Category (10a) of Annex III – Reduced rate of VAT applicable to renovation and repairing of private dwellings, excluding materials which account for a significant part of the value of the service supplied – National legislation applying a reduced rate of VAT to supplies of services of installing ‘energy-saving materials’ and supplies of such materials

Citations:

C-161/14, [2015] EUECJ C-161/14, ECLI:EU:C:2015:355

Links:

Bailii

Statutes:

Directive 2006/112/EC 98(2)

Jurisdiction:

European

VAT

Updated: 30 November 2022; Ref: scu.547693

3P Telephone Company Ltd v Revenue and Customs (Value Added Tax – Input Tax Credit): FTTTx 3 Feb 2020

VALUE ADDED TAX – input tax credit – missing trader fraud – electronic communication services – whether the appellant through its director knew or should have known of the connection with fraud – should have known – appeal dismissed

Citations:

[2020] UKFTT 69 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.649150

Jarvis v Revenue and Customs (Value Added Tax – Penalty for Dishonest Evasion): FTTTx 27 Jan 2020

VALUE ADDED TAX – penalty for dishonest evasion of VAT – liability of officer of company – ss 60 and 61 Value Added Tax Act 1994 – was appellant dishonest – ability of officer to appeal against the amount of the penalty – amount of reduction for co-operation during HMRC’s investigation – appeal dismissed

Citations:

[2020] UKFTT 54 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.649142

Khan (T/A Cafe Aroma) v Revenue and Customs (Vat – Assessments : Best Judgment): FTTTx 14 Sep 2016

VAT – Assessments following invigilation by HM Revenue and Customs officers – Ratio between Zero and Standard rated supplies – Suppression of sales – whether assessments to ‘best judgment’ – Yes – Appeal dismissed

Citations:

[2016] UKFTT 639 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.570071

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 demonstrators, paying VAT on the full amount of the sale price. This will in due course be recoverable as input tax by being set off against the output tax for which the distributor was accountable on its taxable supplies. The object of the KPMG scheme was to ensure that companies in the distributor’s group were able to recover input tax paid on the price of new cars acquired as demonstrators from manufacturers, while avoiding the payment of output tax on the price at which the car was ultimately sold second-hand to a consumer.
Held: The Revenue’s appeal succeeded. The Cars Order was made with the intention of applying article 26a of the Sixth Directive to the used car market. All domestic VAT implementing legislation is made against the background of EU law, including its general principles, and on the footing that these will apply to it. It would be irrational and unworkable for the principle of abuse of law to apply to some steps in a concerted scheme of transactions but not others, depending on the degree to which the legislator’s intention to transpose the Directive was successfully achieved.
The effect of the KPMG scheme was to enable the Pendragon Group to sell demonstrator cars second-hand under the margin scheme in circumstances where VAT had not only been previously charged but fully recovered. The result was that no net charge to VAT was ever suffered, except on the small or non-existent profits realised on the resale. A system designed to prevent double taxation on the consideration for goods has been exploited so as to prevent any taxation on the consideration at all. In that respect the KPMG scheme was contrary to the EU policy underlying the margin scheme, and that the first Halifax test was satisfied.

Judges:

Lord Neuberger, President, Lord Sumption, Lord Reed, Lord Carnwath, Lord Hodge

Citations:

[2015] UKSC 37, [2015] STI 1921, [2015] WLR(D) 253, [2015] STC 1825, [2015] 3 All ER 919, [2015] BVC 30, [2015] 1 WLR 2838, UKSC 2013/0197

Links:

Bailii, Bailii Summary, WLRD, SC, SC Summary, SC Video

Jurisdiction:

England and Wales

Citing:

At FTTTxPendragon 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 . .
At UTTCHM 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 . .
At CAPendragon 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.
CitedBLP Group v Commissioners of Customs and Excise ECJ 6-Apr-1995
The use of taxable goods for an exempt transaction disallowed a claim against VAT input tax. The use in that provision of the words ‘for transactions’ shows that to give the right to deduct under paragraph 2, the goods or services in question must . .
CitedEmsland-Starke GmbH v Hauptzollamt Hamburg-Jonas ECJ 14-Dec-2000
ECJ Articles 9(1), 10(1) and 20(2) to (6) of Regulation No 2730/79 laying down common detailed rules for the application of the system of export refunds on agricultural products, in the version resulting from . .
CitedHalifax plc etc v Commissioners of Customs and Excise ECJ 21-Feb-2006
ECJ Sixth VAT Directive – Article 2(1), Article 4(1) and (2), Article 5(1) and Article 6(1) – Economic activity – Supplies of goods – Supplies of services – Abusive practice – Transactions designed solely to . .
CitedCadbury Schweppes Overseas Ltd v Commissioners of Inland Revenue ECJ 2-May-2006
ECJ Opinion – Freedom of movement of persons – Freedom of establishment – Law on controlled foreign companies – Attribution to the parent company of the profits of its subsidiary established in another Member . .
ApprovedWHA Ltd and Another v Revenue and Customs CA 17-Jul-2007
The court considered the European principle of abuse of right.
Held: Lord Neuberger, delivering the leading judgment rejected the submission that the court was confined to considering the artificiality or purpose of each individual step, since . .
CitedMinistero dell’Economia e delle Finanze v Part Service Srl ECJ 21-Feb-2008
ECJ Sixth VAT Directive Articles 11A(1)(a) and 13B(a) and (d) – Leasing – Artificial division of the supply into a number of parts – Effect Reduction of the taxable amount – Exemptions – Abusive practice . .
CitedWeald Leasing (Taxation) ECJ 26-Oct-2010
ECJ Opinion – Value added tax (VAT) – Sixth Council Directive 77/388/EEC – Concept of ‘abusive practice’ and ‘normal commercial operations’ – Transaction designed solely to obtain a tax advantage – Leasing and . .
CitedCommissioners for Her Majesty’s Revenue and Customs v RBS Deutschland Holdings ECJ 22-Dec-2010
ECJ Sixth VAT Directive – Right to deduction – Purchase of vehicles and use for leasing transactions – Differences between the tax regimes of two Member States – Prohibition of abusive practices
‘taxable . .
CitedForvaltnings AB Stenholmen v Riksskatteverket ECJ 1-Apr-2004
ECJ Judgment – Sixth VAT Directive – Article 26a – Special arrangements applicable to second-hand goods – The term ‘second-hand goods’ – Horse sold on after training . .
CitedJyske Finans A/S v Skatteministeriet intervening parties: Nordania Finans A/S, BG Factoring A/S ECJ 8-Dec-2005
ECJ Sixth VAT Directive – Article 13B(c) – Exemptions – Exemption of supplies of goods excluded from the right to deduct – Resale of motor cars purchased second-hand by a leasing company – Article 26a – Special . .
CitedTest Claimants In The FII Group Litigation v Commissioners of Inland Revenue ECJ 12-Dec-2013
ECJ Judicial protection – Principle of effectiveness – Principles of legal certainty and the protection of legitimate expectations – Restitution of sums paid but not due – Remedies – National legislation – . .
CitedElida Gibbs Ltd v Commissioners Of Customs And Excise ECJ 24-Oct-1996
ECJ Where
(a) a manufacturer issues a money-off coupon, which is redeemable at the amount stated on the coupon by or at the expense of the manufacturer in favour of the retailer, (b) the coupon, which is . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 27 November 2022; Ref: scu.547713

Gemeente Leusden: ECJ 29 Apr 2004

Turnover taxes – Common system of value added tax – Article 17 of the Sixth Directive 77/388/EEC – Deduction of input tax – Amendment of national legislation withdrawing the right to opt for taxation of lettings of immovable property – Adjustment of deductions – Application to current leases

Citations:

C-7/02, [2004] EUECJ C-7/02, [2004] STI 1199

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 27 November 2022; Ref: scu.213796

Jervis B Webb Company Ltd v Commissioners of Customs and Excise: VDT 1 Jul 2004

DEFAULT SURCHARGE – Reasonable excuse – Appellant accepted in credit transfer scheme – Appellant’s erroneous belief that seven days’ grace applied also to payment by cheque – Lack of communication within Appellant company – Whether reasonable excuse – No – Appeal dismissed – VATA 1994 s 59(7)

Citations:

[2004] UKVAT V18679

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.199192

BRS Automotive Ltd v Commissioners of Customs and Excise: CA 4 Dec 1998

Input VAT was reclaimable against the purchase of motor vehicles. A change in regulations for hiring out afterwards was effective even though the scheme was artificially complicated since the hire was not to take place before date of change.

Citations:

Times 04-Dec-1998

Statutes:

VAT (Input Tax) Order 1997 art 7

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.78715

Healthspan Ltd v Revenue and Customs (VAT – Goods Despatched From Warehouse In Netherlands Delivered To UK Customers): FTTTx 17 Dec 2020

VAT – goods despatched from warehouse in Netherlands delivered to UK customers – Article 33 of the PVD – whether goods despatched or transported ‘by or on behalf of the supplier’ – CJEU judgment in KrakVet applied to the facts – goods supplied by or on behalf of Appellant – appeal refused

Citations:

[2020] UKFTT 509 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.661811

Royal County Down Golf Club v Revenue and Customs (VAT – Time Limits): FTTTx 12 Mar 2021

VAT – section 80, VATA 1994 – time limits – whether or not a new claim or an amendment to a pre-existing claim – new claim – whether or not the FTT has jurisdiction in respect of HMRC’s care and management powers to waive the time limit – no – whether or not a breach of Article 1 of Protocol 1 of the ECHR – no – whether or not a breach of the principles of equivalence or effectiveness – no – appeal dismissed

Citations:

[2021] UKFTT 70 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 27 November 2022; Ref: scu.661791

Ali (T/A Indian Voojan) v Revenue and Customs (Value Added Tax – Assessments for VAT On Under Declared Takings): FTTTx 4 Feb 2020

VALUE ADDED TAX – assessments for VAT on under declared takings – assessments in time and to best judgment – assessments not displaced and upheld – penalty for deliberate and concealed inaccuracies – held neither but inaccuracies were careless – penalty reduced.

Citations:

[2020] UKFTT 70 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 November 2022; Ref: scu.649151

St James Marketing Ltd v Revenue and Customs (VAT – Default Surcharge Assessment): FTTTx 15 Dec 2020

VAT – default surcharge assessment pursuant to s 59 Value Added Tax Act 1994 – electronic submission of VAT return pursuant to Regulation 25A Value Added Tax Regulations 1995 and online payment of VAT – whether reasonable excuse established for late payment of VAT – no – appeal dismissed

Citations:

[2020] UKFTT 505 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 November 2022; Ref: scu.661820

St Georges University Ltd v Revenue and Customs (Value Added Tax – Education and Vocational Training): FTTTx 22 Jan 2021

VAT – HMRC refusal of application to cancel VAT registration – whether supplies made in restaurant were closely related to exempt supplies of education – held yes – decision to refuse to cancel registration unreasonable – appeal allowed

Citations:

[2021] UKFTT 13 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 November 2022; Ref: scu.661748

Borough Council of Kings Lynn and West Norfolk (No 2) v Revenue and Customs (VAT – Public Authority Car Park): FTTTx 18 Jan 2021

VAT – Public authority car park – Whether ‘overpayment’ of parking charge consideration for VAT purposes – Whether distinguishable from NCP v HMRC – No – Appeal dismissed

Citations:

[2021] UKFTT 10 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.661730

Harrison v Revenue and Customs (VAT – Agricultural Flat Rate Scheme): FTTTx 16 Dec 2020

VAT – Agricultural Flat Rate Scheme – Article 296(2) of the Principal VAT Directive – each Member State may exclude from the flat-rate scheme farmers for whom application of the normal VAT arrangements is not likely to give rise to administrative difficulties – interpretation by the CJEU in Shields and Sons v HMRC – Regulation 204(d) of the VAT Regulations 1995 – requires that in order to be certified to join the scheme, a business’s total Flat Rate Addition of 4% of its anticipated total supplies to be made in the year following the date of certification cannot exceed by pounds 3,000 or more the amount of input tax to which the business would otherwise be entitled to deduct under normal VAT arrangements – the Regulation is not ultra vires as regards the Directive but lawfully implements its aim of administrative simplification for small farming businesses – the Regulation and its application to the appellant do not offend principles of equality of treatment nor fiscal neutrality – appeal dismissed

Citations:

[2020] UKFTT 518 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.661810

Buckstone Group Ltd v Revenue and Customs (Value Added Tax – Default Surcharges – Reasonable Excuse): FTTTx 25 Mar 2020

VALUE ADDED TAX – default surcharges – reasonable excuse – cash flow problems due to compulsory purchase order on land of the appellant or related company – not proved that cash flow problems unavoidable even with appropriate foresight and due diligence – excuse not objectively reasonable – appeal dismissed

Citations:

[2020] UKFTT 168 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.650677

The Premspec Group Ltd v Revenue and Customs (Value Added Tax – Disallowance of Input Tax Credit Under S26A VATA 1994): FTTTx 25 Mar 2020

VALUE ADDED TAX – disallowance of input tax credit under s26A VATA 1994 – unpaid consideration for supplies between related companies- was consideration unpaid 6 months after ‘relevant date’? – Found: consideration became payable later than date of supply – ‘relevant date’ not yet reached – appeal allowed

Citations:

[2020] UKFTT 167 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.650691

Mcgarry v Revenue and Customs (Value Added Tax – DIY House Builders Scheme): FTTTx 30 Mar 2020

Value Added Tax – DIY House Builders Scheme – construction of a dwelling – claim for input VAT refund under s 35 VATA – occupation before Certificate of Completion issued – whether the claim time-barred – determination of ‘completion’ for the purposes of reg 201 of the 1995 Regulations – appeal allowed

Citations:

[2020] UKFTT 157 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.650689

Barclays Services Corporation, Barclays Execution Services Ltd v Revenue and Customs (Value Added Tax – Case Management – Disclosure): FTTTx 19 Mar 2020

VALUE ADDED TAX – Case Management – Disclosure – Approval of draft order – Extent of disclosure – Keyword searching of Electronically Stored Information

Citations:

[2020] UKFTT 149 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 25 November 2022; Ref: scu.650675