Category: VAT

New Lodge Estate Working Mens Club v Revenue and Customs: FTTTx 27 Aug 2013

FTTTx Value added tax – application by Appellant for an extension of time to appeal – cross application by HMRC to strike out appeal – omission by HMRC to offer a reconsideration – delay by Appellant in lodging appeal – whether reasonable excuse – no – application refused and appeal struck out

Citations:

[2013] UKFTT 460 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 19 May 2022; Ref: scu.515217

Pelix Ltd v Revenue and Customs: FTTTx 23 Aug 2013

FTTTx VAT – input tax – involvement in MTIC transactions – denial of repayment on Kittel grounds – position of contra-trading transactions after Mahageben – whether taxpayer knew or should have known of connection to fraudulent VAT evasion – appeal dismissed

Citations:

[2013] UKFTT 448 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 19 May 2022; Ref: scu.515222

Customs and Excise Commissioners v Reed Personal Services Ltd: 1995

The court consideerd the basic nature of Value Added Tax (VAT): ‘First, . . .. the concept of supply for the purposes of VAT is not identical with that of contractual obligation. Secondly, in consequence, it is perfectly possible that although the parties in any given situation may conclude their contractual arrangements in writing so as to define all their mutual rights and obligations arising in private law, their agreement may nevertheless leave open the question, what is the nature of the supplies made by A to B for the purposes of A’s assessment of VAT. In many situations, of course, the contract will on the facts conclude any VAT issue, as where there is a simple agreement for the supply of goods or services with no third parties involved. In cases of that kind there is no space between the issue of supply for VAT purposes and the nature of the private law of contractual obligation. But that is a circumstance, not a rule. There may be cases, generally (perhaps always) where three or more parties are concerned, in which the contract’s definition (however exhaustive) of the parties’ private law obligations nevertheless neither caters for nor concludes the statutory question, what supplies are made by whom to whom. Nor should this be a matter for surprise: in principle, the incidence of VAT is obviously not by definition regulated by private agreement. Whether and to what extent the tax falls to be exacted depends, as with every tax, on the application of the taxing statute to the particular facts. Within those facts, the terms of contracts entered into by the tax-payer may or may not determine the right tax result. They do not necessarily do so.’

Judges:

Laws J

Citations:

[1995] STC 588

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 17 May 2022; Ref: scu.229021

Customs and Excise Commissioners v Diner’s Club Ltd: CA 1989

Where a payment is made by credit card, some form of underlying contractual scheme will pre-date any individual contract of sale. This may include not merely the contract between the card-holder and card-issuer, but also an arrangement between the card-issuer or acquirer and the store. In over-the-counter sales, the retailer commonly has no record of the customer’s address and no means of tracing the customer other than through the card-issuer; and it listed among the ‘normal features of credit card or charge card transactions’ that they ‘have come to be regarded as substitutes for cash: they are frequently referred to as ‘plastic money”. A credit card scheme ‘provides advantages for both seller and purchaser. The seller is able to attract custom by agreeing to accept credit card payment. The purchaser, by using the card, minimises the need to carry cash and obtains at least a period of free credit during the period until payment to the card company is due’.

Judges:

Sir Nicolas Browne-Wilkinson

Citations:

[1989] STC 407

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 17 May 2022; Ref: scu.229022

Trafalgar Tours Ltd v Customs and Excise Commissioners: CA 1990

United Kingdom legislation is to be construed so far as possible so as to give effect to the purpose(s) of the European directives. As to the meaining of ‘consideration’ under the Sixth Directive: ‘Having regard to art 11A(1)(a) of the Sixth Directive, we are, therefore, subject to one important qualification prepared to accept that the expression ‘consideration’ in s 10(2) of the 1983 Act means everything which the supplier has received or is to receive from the purchaser, the customer or a third party for the relevant supplies. The one important qualification is this. The concept of receipt for this purpose is not to be confined to mere physical receipt; anything which is received by persons for and on behalf of the supplier must be treated for this purpose as received by the supplier himself . . . ‘

Citations:

[1990] STC 127

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to . .
Lists of cited by and citing cases may be incomplete.

European, VAT

Updated: 17 May 2022; Ref: scu.229020

H and M Hennes Ltd v Customs and Excise: ChD 22 Apr 2005

The taxpayers prepared clothing which was designed for children in that it followed the typical shapes of children. The Commissioners disallowed the exemption from VAT on the basis of the application of their simple rule which divided clothing according to the height of the intended wearer.
Held: The approach of the Commissioners and of the VAT tribunal was not to be criticised. The Tribunal had not applied the Commissioners’ policy as if it were law, but as a measure of the ordinary meaning of the words ‘young children’.

Judges:

Rattee J

Citations:

Times 10-May-2005

Statutes:

Value Added Tax Act 1994 Sch 8

Jurisdiction:

England and Wales

Citing:

Appeal from – H and M Hennes Ltd v Customs and Excise VDT 16-Jul-2004
. .

Cited by:

Appealed to – H and M Hennes Ltd v Customs and Excise VDT 16-Jul-2004
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 17 May 2022; Ref: scu.224768

Shuttleworth and Co v Commissioners of Customs and Excise: 1994

The transfer of funds by a solicitor was part of the overall conveyancing service provided by a solicitor to his client. Therefore, a telegraphic transfer fee could not for VAT purposes, be treated as a disbursement in the solicitor’s bill to his client.

Citations:

Lon/94/986A

VAT, Legal Professions

Updated: 16 May 2022; Ref: scu.187350

Capital One Developments Ltd v Commissioners of Customs and Excise: ChD 4 Feb 2002

The company sought repayment of some 8 million pounds overpaid VAT from the Commissioners. That claim was yet to be determined, but the company sough an order for interim payments, on the basis that it could repay if necessary.
Held: Whilst such an order might be made, it would require exceptional circumstances. The claim was disputed, and none such existed here. The applicant might better have proceeded by way of judicial review than an application for an injunction.

Judges:

Mr Justice Neuberger

Citations:

Times 19-Feb-2002, Gazette 14-Mar-2002, [2002] STC 479

Statutes:

Civil Procedure Rules 25.1

Jurisdiction:

England and Wales

Cited by:

Cited – Regina on the Application of Teleos Plc and others v Commissioners of Customs and Excise CA 2-Mar-2005
The taxpayer sought to challenge in Europe the ruling by the respondents that the mobile phones they supplied did not meet the criteria to be zero-rated for VAT. A decision would be unlikely before 2006. They sought judicial review now of the . .
Lists of cited by and citing cases may be incomplete.

Civil Procedure Rules, VAT

Updated: 16 May 2022; Ref: scu.167628

HR Transport Services Ltd v Revenue and Customs: FTTTx 13 Jan 2014

FTTTx VAT default surcharge – course of dealing with bank relying on end of day settlement to cover payments within group – new bank manager refusing to process CHAPS payment – reasonable excuse due to lack of funds – no – reasonable to expect that VAT would be received within appropriate time due to established course of dealing – yes – appeal allowed.

Citations:

[2014] UKFTT 90 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 16 May 2022; Ref: scu.521703

University of Cambridge v Revenue and Customs: FTTTx 19 Aug 2013

FTTTx Value added tax – whether input tax recoverable – tax incurred on non-business investment activity raising income used by University to facilitate and support its other activities both taxable and exempt – whether fees incurred on management of fund an overhead for input tax to be treated as residual – yes – tax recoverable under Appellant’s partial special exemption

Citations:

[2013] UKFTT 444 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 16 May 2022; Ref: scu.515231

Abbey (Manchester) Ltd v Revenue and Customs: FTTTx 28 Jan 2011

VALUE ADDED TAX- – MTIC-sale of mobile phones- appellant’s repayment claim for refused on grounds that the appellant knew that the transaction was part of an MTIC fraud – set off of input tax of pounds 8,397,212.57 against output tax of pounds 8,397,942.60 in dirty chain- appellant in ‘clean chain’ claiming repayment pounds 967,802.50 knew that the deals were part of a VAT fraud — appeal dismissed

Citations:

[2011] UKFTT 90 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 16 May 2022; Ref: scu.442785

Robert Gordon’s College v Customs and Excise Commisssioners: HL 27 Nov 1995

Input tax was recoverable by a school sports centre management, despite the use by the school. Self supply transactions must be looked at each individually, not as a whole series.

Citations:

Ind Summary 18-Dec-1995, Times 27-Nov-1995

Jurisdiction:

England and Wales

Citing:

Appeal from – Commissioners of Customs and Excise v Robert Gordon’s College ChD 6-Sep-1994
The self-supply rules applied despite the use by the taxpayer of an intermediate lease and a separate company to carry on certain activities. . .

Cited by:

Appealed to – Commissioners of Customs and Excise v Robert Gordon’s College ChD 6-Sep-1994
The self-supply rules applied despite the use by the taxpayer of an intermediate lease and a separate company to carry on certain activities. . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 15 May 2022; Ref: scu.88804

Commissioners of Customs and Excise v Wiggett Construction Ltd: ChD 18 May 2001

The Commissioners appealed against a decision as to the apportionment of input taxes on a construction project by the VAT and Duties Tribunal. The Appeal Court, once it had satisfied itself that the Tribunal had properly directed itself as to the law, could only substitute its own judgement as to the facts where there was no factual basis for the decision reached by the Tribunal. The Tribunal was entitled to its own decision. In this case, the facts allowed two possible interpretations, and the appeal court could not substitute its own opinion.
courtcommentary.com Where purchase of property has a cost component in both sale and redevelopment, input tax should be apportioned by way of partial exemption calculation

Judges:

Lightman J

Citations:

Times 07-Jun-2001, CH/2001/APP/110

VAT

Updated: 15 May 2022; Ref: scu.79404

Commissioners of Customs and Excise v E Reece Ltd: ChD 11 Oct 2000

The taxpayer company had imported bicycles from Vietnam, relying upon certificates of origin which would give them exemption from VAT. After clearance, it was discovered that the certificates had been obtained by fraud. The regulations exempted only where the certificates had been wrongly obtained by accident. Though the taxpayer was not party to the fraud, he could not rely upon the exporter’s fraud to maintain the exemption certificate.

Citations:

Times 11-Oct-2000

VAT

Updated: 15 May 2022; Ref: scu.79381

Commissioners of Customs and Excise v Littlewoods Organisation Plc: ChD 4 Jul 2000

The enhanced commission paid to mail order catalogue agents for supplying services to the company and which was to be set off against goods purchased by the agents themselves from the mail order company were vatable. The commission earned represented in part a discount on the goods purchased, but in reality was also a consideration for the supply of the agents’ services.

Citations:

Times 04-Jul-2000

Statutes:

Sixth Council Directive 77/388/EEC

Citing:

Appealed to – Commissioners of Customs and Excise v Littlewoods Organisation plc CA 26-Oct-2001
Agents of the taxpayer received commission on sales. They could take it in cash, or at an enhanced rate on goods purchased. How was the tax to be calculated on the goods sold to the agent? The right to take goods at the enhanced rate arose from a . .

Cited by:

Appeal from – Commissioners of Customs and Excise v Littlewoods Organisation plc CA 26-Oct-2001
Agents of the taxpayer received commission on sales. They could take it in cash, or at an enhanced rate on goods purchased. How was the tax to be calculated on the goods sold to the agent? The right to take goods at the enhanced rate arose from a . .
Lists of cited by and citing cases may be incomplete.

VAT, Agency

Updated: 15 May 2022; Ref: scu.79388

HM Revenue v The Core (Swindon) Limited: UTTC 11 Nov 2020

VAT- zero rating-whether FTT erred in reaching its conclusion that Juice Cleanse Programmes should be zero rated as supplies of food rather than standard rated as supplies of beverages- held no- appeal dismissed-Group 1 Schedule 8 VATA 1994

Citations:

[2020] UKUT 301 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 15 May 2022; Ref: scu.656596

Customs and Excise Commissioners v West Herts College: ChD 2001

West Herts College produced, printed and distributed prospectuses detailing its courses and facilities. The prospectuses were issued free to students and others. The expenditure producing the prospectuses had been treated by the Commissioners as expenditure in making both taxable and exempt supplies on the basis that a proportion of input tax on the goods and services used by the college in making both taxable and exempt supplies was attributable by operation of regulation 101 of the Regulations to the college’s taxable supply. The college sought in reliance on paragraph 5(1) of Schedule 4 to reclaim all of the input tax on the cost of producing the prospectuses. It succeeded in so doing before the VAT and Duties Tribunal.
Held: The Commissioners’ appeal was dismissed. The college argued (1) that the prospectuses were ‘goods forming part of the assets of [the college’s] business’, (2) that those goods had been ‘transferred or disposed of’ by the college so as no longer to form part of those assets and (3) that paragraph 5(1) was not disapplied by paragraph 5(5) in that the college was entitled, disregarding paragraph 5, to credit for part of the input tax on the supplies to it in connection with the production of the prospectuses because of the operation of regulation 101 and the treatment in the past of the college’s expenditure on producing the prospectuses as expenditure in making both taxable and exempt supplies: ‘Given therefore [that] what one was now looking at was a supply under paragraph 5(1), the only question is whether that is a taxable supply. If it is a taxable supply, the consequence follows that the whole of the input tax of the relevant goods and services has to be attributed under reg 101(2)(b) of the 1995 regulations to the making of that taxable supply. It plainly is a taxable supply, albeit zero-rated, since it is not an exempt supply. None of the exemptions in Sch 9 cover the issue of the prospectuses in question.’ The Commissioners raised two points. They challenged the proposition that paragraph 5(5) had no application, saying that for a credit to exist, to which paragraph 5(5) refers (and without which paragraph 5(1) will not apply), the credit must be for the purposes of the person’s taxable and not exempt supplies whereas the college’s prospectuses had been produced exclusively for the purpose of making the college’s exempt supplies of education. Having regard to the fact that the Commissioners had historically accepted that the expenditure in question was for both taxable and exempt supplies, the court said it was not open to them now to contend otherwise, and proceeded on the footing that the college was entitled to deduct part of the input tax on the supplies made to it with the result that paragraph 5(5) did not apply so as to prevent paragraph 5(1) from operating. The Commissioners also contended that the prospectuses were not goods forming part of the assets of the college’s business, disputing the existence of a separate supply. The submission was rejected: ‘I have therefore come to the conclusion that neither of the arguments presented attractively by [counsel for the Commissioners] succeeds. I do, however, agree with him that the result is an odd one. Paragraph 5 is, in broad terms, an antiavoidance provision, deeming something to be a supply (and therefore taxable if not exempt) which would not otherwise be a supply. It is odd that in the circumstance where a taxable person is partially exempt, it should have the effect of entitling that person to claim full input tax credit in respect of that supply without generating a corresponding and neutralising liability for output tax. The oddity however is mainly the result of the fact that the rate of output tax on the notional supply is zero, coupled with the fact that the commissioners had not established that the goods or services in respect of which the input tax is claimed as deductible, are used exclusively by the college for making its exempt supplies.’

Judges:

Hart J

Citations:

[2001] STC 1245

Jurisdiction:

England and Wales

Cited by:

Cited – Church of England Children’s Society v Revenue and Customs ChD 29-Jul-2005
The Society sent out free newsletters to its unpaid fund-raisers and supporters. They sought to deduct input tax charged to them from the supplies associated with the costs.
Held: The Society might be able to deduct such tax as residual input . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 May 2022; Ref: scu.230377

Halifax plc v Commissioners of Customs and Excise: VDT 2001

Citations:

[2001] VATTR 71

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
The store introduced a system whereby when a customer paid by credit card, the charges made to them for card handling were expressed as a separate amount on the receipt. The store then said that VAT was payable only on the net amount allocated to . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 May 2022; Ref: scu.229019

Commissioners for Customs and Excise v Rowland: 1992

The provision for a repayment supplement is a ‘spur to efficiency’ in the commissioners.

Judges:

Auld J

Citations:

[1992] STC 647

Cited by:

Cited – UK Tradecorp Ltd, Regina (on the Application of) v Commissioners for Customs and Excise Admn 10-Nov-2004
The trader had traded in zero-rated goods, leading to a net reclaim of input tax. Having submitted a claim, it sought repayment, and interest on the sums withheld.
Held: No duty fell upon the commissioners until they had accepted the claim to . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 May 2022; Ref: scu.220138

Regina v Commissioners of Customs and Excise ex parte Strangewood: 1987

The court considered goods for export and their status as zero rated.

Citations:

[1987] STC 502

Cited by:

Cited – UK Tradecorp Ltd, Regina (on the Application of) v Commissioners for Customs and Excise Admn 10-Nov-2004
The trader had traded in zero-rated goods, leading to a net reclaim of input tax. Having submitted a claim, it sought repayment, and interest on the sums withheld.
Held: No duty fell upon the commissioners until they had accepted the claim to . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 May 2022; Ref: scu.220135

Zielinski Baker and Partners Ltd v Commissioners of Customs and Excise: 2001

‘Note (1)(a) of Group 6 provides that an essential feature of a protected building is that it is a listed building ‘within the meaning of’ the 1990 Act. A listed building ‘within the meaning of’ the 1990 Act is a building which falls within the extended definition in section 1(5) of the 1990 Act.’

Judges:

Etherton J

Citations:

[2001] STC 585

Statutes:

Value Added Tax Act 1994 Sch 8 Grp 6, Planning (Listed Buildings and Conservation Areas) Act 1990 1(5)

Jurisdiction:

England and Wales

Cited by:

Appeal from – Zielinski Baker and Partners Ltd v Commissioners of Customs and Excise CA 12-May-2002
Taxpayers sought exemption from VAT for works to a building. The commissioners claimed that the main building was not a dwelling, and that therefore the outbuilding would not be exempt.
Held: The main building was listed, and the outbuilding . .
Lists of cited by and citing cases may be incomplete.

VAT, Construction

Updated: 13 May 2022; Ref: scu.193895

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 Marleasing or Becker – yes – whether VAT was ‘due or paid’ – no – whether HMRC’s exercise of discretion to refuse input tax recovery in absence of invoices flawed – yes but decision would inevitably have been the same if all relevant matters considered – preliminary issue decided against the appellant – appeal dismissed

Citations:

[2014] UKFTT 649 (TC), [2014] SFTD 1309, [2014] STI 2601

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

At FTTTx – 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 CA 29-Jun-2018
. .
At FTTTx – 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 . .
At FTTTx – 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 . .
At FTTTx – 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

Updated: 12 May 2022; Ref: scu.534293

Zipvit Ltd v Revenue and Customs: CA 29 Jun 2018

Citations:

[2018] EWCA Civ 1515, [2018] 1 WLR 5729, [2018] STC 1502, [2018] BVC 29, [2018] WLR(D) 404, [2018] STI 1455

Links:

Bailii, WLRD

Jurisdiction:

England and Wales

Citing:

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 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 . .

Cited by:

At CA – 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 . .
At CA – 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 . .
At CA – 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: 12 May 2022; Ref: scu.618932

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 parties thought the supplies were exempt and the supplies were shown as VAT exempt in the invoices? No

Citations:

[2016] UKUT 294 (TCC), [2016] STC 1782, [2016] BVC 522

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

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 . .

Cited by:

At UTTC – Zipvit Ltd v Revenue and Customs CA 29-Jun-2018
. .
At UTTC – 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 . .
At UTTC – 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 . .
At UTTC – 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

Updated: 12 May 2022; Ref: scu.567362

The Commissioners of Customs And Excise v Bassimeh: CA 20 Nov 1996

The respondent had operated a restaurant through a limited company. The commissioners issued notices of assessments and penalties against the company, now in liquidation, and the defendant, on the basis that the company had consistently under-reported its takings. The commissioners appealed a decision setting aside the notices. The argument was as to whether notices had to be issued for the separate quarters. Because the revenue could calculate the penalty as equivalent to the amount under declared, no separate calculation need be made, even though, in this case, no penalty was recoverable for part of the period.

Citations:

[1996] EWCA Civ 999

Statutes:

Finance Act 1985 13(4)

Jurisdiction:

England and Wales

VAT, Taxes Management

Updated: 11 May 2022; Ref: scu.140866

Rowe and Maw (a firm) v Customs and Excise Commissioners: QBD 1975

The Court considered two items of expenditure by a solicitor on his own travel expenses. In one case the expenditure related to travel to a Crown Court in connection with the defence of a client; in the other the expenditure was incurred in travelling to Rotterdam in connection with the sale of shares by a client.
Held: In neither case did the expenditure constitute a disbursement made on behalf of the clients. Wien J, adopting the VAT tribunal’s views, said: ‘In our view that supply consisted of what we may comprehensively call the legal services rendered by the appellants in connection with the proposed sale, some of which had to be rendered in Rotterdam and could only be so rendered if a member of the firm travelled there for the purpose. He concluded that the nature of the services provided by the solicitor necessarily involved expenditure on travel tickets, which was a cost component of his services, saying that the expenditure was ‘something which is not strictly a payment that the client has asked for, either expressly or impliedly, but is part of the whole legal services rendered by the solicitor for which there is a consideration’.
Bridge J, concurring, identified a class of cases ‘where the goods or services purchased are supplied to the solicitor, as here in the form of travel tickets, to enable him effectively to perform the service supplied to his client, in this case to travel to the place where the solicitor’s service is required to be performed. In such case, in whatever form the solicitor recovers such expenditure from his client, whether as a separately itemised expense or as part of an inclusive overall fee, value added tax is payable because the payment is part of the consideration which the client pays for the service supplied by the solicitor.’

Judges:

Bridge J, Wien J, Eveleigh J

Citations:

[1975] STC 340

Cited by:

Cited – Barratt, Goff and Tomlinson and The Law Society As Intervenor v Revenue and Customs FTTTx 20-Jan-2011
FTTTx VAT – disbursements – whether fees paid for medical records and medico-legal reports by solicitors acting for clients in personal injury and medical negligence claims disbursements and thus outside scope of . .
Lists of cited by and citing cases may be incomplete.

Legal Professions, Costs, VAT

Updated: 11 May 2022; Ref: scu.463690

Marks and Spencer Plc v Customs and Excise: HL 12 Jul 2006

Question referred to ECJ. Five questions were referred.

Judges:

Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Scott of Foscote and Lord Walker of Gestingthorpe

Citations:

[2006] UKHL 69(Report), [2008] STC 1408

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Decision to refer – 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 . .
At CA – 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 . .

Cited by:

Reference to ECJ – Marks and Spencer Plc v Customs and Excise HL 4-Feb-2009
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 . .
Reference – 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 . .
Reference – 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 . .
Lists of cited by and citing cases may be incomplete.

European, VAT

Updated: 11 May 2022; Ref: scu.243082

Primback Ltd v Commissioners of Customs and Excise: CA 30 Apr 1996

A retailer giving a discount was liable for Vat only on the discounted finance price, not on the full retail price.

Citations:

Times 30-Apr-1996, [1996] STC 757

Jurisdiction:

England and Wales

Citing:

Appeal from – Primback Ltd v Customs and Excise Commissioners QBD 12-Sep-1994
An undisclosed discount for interest free credit given by a retailer was not allowable, and VAT was payable on the full amount. . .
Referred to – Primback Ltd v Commissioners of Customs and Excise ECJ 15-May-2001
A company made arrangements for finance for its customers to purchase products at an apparent zero rate of interest. In fact the finance company deducted an undisclosed commission before forwarding payment to the shop. The shop wanted to pay VAT . .

Cited by:

Reference from – Primback Ltd v Commissioners of Customs and Excise ECJ 15-May-2001
A company made arrangements for finance for its customers to purchase products at an apparent zero rate of interest. In fact the finance company deducted an undisclosed commission before forwarding payment to the shop. The shop wanted to pay VAT . .
Cited – Courts Plc v Customs and Excise CA 17-Nov-2004
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 11 May 2022; Ref: scu.85036

Regina v Commissioners of Customs and Excise, Ex Parte Building Societies Ombudsman Co Ltd: CA 8 Nov 2000

Law had been introduced which restricted retrospectively the ability of taxpayers to reclaim overpaid VAT to a period of three years. Such legislation did not however allow the Commissioners to seek to recover repayments already repaid in the period immediately before the legislation came into effect.

Citations:

Times 08-Nov-2000

Statutes:

Provisional Collection of Taxes Act 1986

Jurisdiction:

England and Wales

Taxes Management, VAT

Updated: 11 May 2022; Ref: scu.85193

Lancaster v Bird: CA 9 Mar 1999

A term can be implied by custom that VAT is to be charged over and above the contract price stated, but in consumer contracts, this could only be achieved by an explicit term of the contract. This could not satisfy the ‘officious bystander’ test.

Citations:

Times 09-Mar-1999

Jurisdiction:

England and Wales

VAT

Updated: 10 May 2022; Ref: scu.82918

Customs and Excise Commissioners v Madgett and Another T/A Howden Court Hotel: QBD 15 Jan 1996

A hotel’s offering of a coach trip to collect guests may make them travel agents for VAT purposes. The case was referred on to the ECJ.

Citations:

Ind Summary 15-Jan-1996

Jurisdiction:

England and Wales

Citing:

Reffered to – Commissioners of Customs and Excise v Madgett and Baldwin (trading as Howden Court Hotel) ECJ 22-Oct-1998
The court considered the criteria for determining whether the provision to guests by a hotelier of travel services (and in particular transport to and from the hotel and excursions) constituted supply which was ancillary to the supply of . .

Cited by:

Reference from – Commissioners of Customs and Excise v Madgett and Baldwin (trading as Howden Court Hotel) ECJ 22-Oct-1998
The court considered the criteria for determining whether the provision to guests by a hotelier of travel services (and in particular transport to and from the hotel and excursions) constituted supply which was ancillary to the supply of . .
Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 10 May 2022; Ref: scu.79733

Commissioners of Customs and Excise v Broomco (1984) Ltd (Formerly Anchor Foods Ltd): CA 17 Aug 2000

When an appeal is lodged in a VAT dispute, the discretion as to whether to require the appellant to lodge security for costs in the appeal, was a decision exclusively to be decided by the tribunal itself. A decision as to such security could not be challenged within enforcement proceedings.

Citations:

Times 17-Aug-2000

Statutes:

Finance Act 1994 16(3)(b)

Jurisdiction:

England and Wales

Citing:

See Also – Commissioners of Customs and Excise v Anchor Foods Ltd (No 2) ChD 24-Mar-1999
The claimant intended to seek recovery of a very substantial sum from the defendant. On learning of the defendant’s intention to sell its assets, it sought an order freezing them.
Held: The court has the discretion to order a freezing of a . .
See Also – Commissioners of Customs and Excise v Anchor Foods Limited Admn 26-Jun-1998
The court heard an appeal by the Commissioners from the VAT Duties Tribunal that ‘Spreadable butter’ and ‘Ammix butter’ from New Zealand made and imported by the respondent are ‘manufactured directly from milk or cream’, and are not ‘recombined . .
See Also – Commissioners of Customs and Excise v Anchor Foods Ltd (No 3) ChD 8-Jul-1999
The Civil Procedure Rules have not changed the common law rules which say that an interlocutory order for costs could not be varied by another judge sitting at first instance, except only in exceptional circumstances where it appeared for example . .
See Also – Customs and Excise v Anchor Foods Ltd (No.4) ChD 18-Oct-1999
. .

Cited by:

Cited – Commissioners of Customs and Excise v Anglo German Breweries Limited ChD 29-Nov-2002
The respondents appealed against imposition of assessments for the diversion of alcohol products from bonded warehouses without payment of duties. Pretence had been made of deliveries abroad, but the goods were later diverted. The company was . .
Lists of cited by and citing cases may be incomplete.

VAT, Costs

Updated: 10 May 2022; Ref: scu.79375

Commissioners of Customs and Excise v Redrow Group Plc: CA 3 Jul 1997

Where a house builder pays the estate agent’s bills on the sale of the buyer’s own house, the VAT paid on the estate agents’ invoices was not recoverable.

Citations:

Times 03-Jul-1997

Jurisdiction:

England and Wales

Cited by:

Appeal from – Commissioners of Customs and Excise v Redrow Group Plc HL 11-Feb-1999
Where house builders had paid the estate agents’ fees for exchanged property on sales, the supply had been, at least in part, to the builder, and the builder could accordingly recover the agents’ VAT as input tax. A supplier could be treated as . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 10 May 2022; Ref: scu.79397

Commissioners of Customs and Excise v Jubilee Hall Recreation Centre Ltd: CA 31 Dec 1998

A part of Covent Garden run by a charity and providing range of fee-paying service to members living locally was not akin to a village hall and the services were subject to VAT. The services are to be provided by and for ‘final consumer,’ the community.

Citations:

Times 31-Dec-1998

Jurisdiction:

England and Wales

VAT

Updated: 10 May 2022; Ref: scu.79332

Co-Operative Wholesale Society Ltd v Commissioners of Customs and Excise: CA 31 Aug 2000

The society contracted to provide either VAT exempt funeral supplies themselves or alternative supplies. The taxpayer contended that this was one composite supply, and the Commissioners that the alternatives created two separately exigible supplies. The supplies eventually provided would be to the estates of members of the schemes, and so those supplies were not one composite supply, but separate and separately taxable supplies according to the services selected.

Citations:

Times 31-Aug-2000, Gazette 12-Oct-2000

Jurisdiction:

England and Wales

VAT

Updated: 10 May 2022; Ref: scu.79490

Commission of the European Communities v United Kingdom Case C-359/97: ECJ 10 Oct 2000

The UK had not complied with its obligations to the commission with regard to VAT in that it had failed to apply VAT to the collection of tolls on the use of roads and bridges where operated privately. The fact that similar operations were carried out by public bodies which would be exempt was insufficient to cause private operators to be exempt. Because the UK had failed to collect these sums, its accounting with the Commission was also in error.

Citations:

Times 10-Oct-2000

VAT, Transport, European

Updated: 10 May 2022; Ref: scu.79306

Foreign Property APS v Secretary of State for Health: 2004

The lease contained special clauses relating to the tenant’s liability to pay VAT at a time before the landlord had supplied evidence of an election to waive the exemption.
Held: Laws LJ said: ‘I acknowledge that the respondent must point to a provision in the lease which disapplies s. 89(1) of the Act. Otherwise, whatever one might think of the equity of the position, the statute increases the consideration (that is the rent) by the amount of the VAT due following the landlord’s election to waive exemption, whether or not the tenant knows of the election.’

Judges:

Laws LJ

Citations:

[2004] 2 P and CR 5

Jurisdiction:

England and Wales

Cited by:

Cited – Mason 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.

Landlord and Tenant, VAT

Updated: 10 May 2022; Ref: scu.279103

Cottage Holiday Associates Ltd v Customs and Excise Commissioners: 1983

The taxpayer had been assessed to VAT on the supply of time share holiday cottages. The supply was of an eighty year lease to each tenant with the right to occupy for one week in each of the eighty years. The taxpayer argued that the supply qualified for zero rating.
Held: The argument failed. The making of such a lease did not amount to the grant of a ‘major interest’ in a building and fell outside the intended scope of item 1 under the 1972 Act.

Judges:

Woolf J

Citations:

1983 STC 278, [1983] 2 WLR 861

Statutes:

Finance Act 1972

Jurisdiction:

England and Wales

Cited by:

Cited – Loch Tay Highland Lodges Ltd v Customs and Excise VDT 1-Feb-2004
VDT Sale of chalets or lodges in holiday development; restriction on use; not to be used as sole or main residence; whether zero rated or standard rated. VATA sections 30 Schedule 8 Group 5 Item 1 and Note 13. . .
Cited – International Life Leisure Ltd v Revenue and Customs VDT 12-Jul-2006
VDT VAT – TOMS – tour operator – whether supplies of hotel and other holiday accommodation in France made by appellant under its booking conditions made as agent for accommodation suppliers or within ambit of . .
Lists of cited by and citing cases may be incomplete.

VAT, Landlord and Tenant

Updated: 10 May 2022; Ref: scu.278875

British Airways Plc v Customs and Excise Commissioners: 1990

The taxpayer carried paying passengers. The travel was zero-rated. They also supplied in-flight food, which the Commissioners sought to hold taxable as a separate supply.
Held: The motives of the tax-payer and traveller were irrelevant. The question was as to what was supplied for the fee charged. If the food was an integral part of the supply of transportation, it was zero-rated. The tribunal had not answered that question, but the court did and in the affirmative.

Citations:

[1990] STC 643

Citing:

Dicta applid – British Railways Board v Commissioners of Customs and Excise CA 1977
The question of what is the supply, is, looking at all the circumstances objectively, what does the customer get, not why does he want it: ‘It cannot depend on the state of mind of any individual student by asking him or her: what did you pay the . .

Cited by:

Cited – Nell Gwynn House Maintenance Fund v Commissioners of Customs and Excise HL 15-Dec-1998
Trustees who managed a group of apartments argued that they did not themselves provide staff services to the tenants, but rather arranged for the staff to provide services to them.
Held: The contract providing cleaning and other services, by a . .
Lists of cited by and citing cases may be incomplete.

VAT, Transport

Updated: 09 May 2022; Ref: scu.194316

Commissioners of Customs and Excise v Royal and Sun Alliance Insurance Group Plc: CA 9 Oct 2001

The respondent sought to deduct input tax from income it received from lettings. It had previously occupied the buildings itself making exempt supplies, but then let them. They later waved their exemption, and sought to deduct input tax for periods prior to the election. One issue was whether a lease was one supply or a series of supplies for each rent period.
Held: There was no valid distinction in the Regulation 85 deeming between rents to be set off against the period in which they fell due, and inputs for the same property. There was no connection between the pre-election expenses and the post election rent receipts. The taxpayers were however saved by regulation 109.

Judges:

Lord Justice Aldous Lord Justice SedleyCitations: [2001] EWCA Civ1476

Statutes:

Value Added Tax Act 1994 Sch 4 Para 4 s5(1) & (2), VAT Regulations 1995/2518 109

Jurisdiction:

England and Wales

Citing:

Cited – Abbey National Plc v Commissioners of Customs and Excise ECJ 22-Feb-2001
Where a part or whole of a business was sold as a going concern, not all the VAT on the expenses of the sale was to be set off against VAT. The entire amount of VAT could only be set off where the assets sold were sold as a properly identifiable . .
Appealed to – Royal and Sun Alliance Insurance Group plc v Her Majesty’s Commissioners of Customs and Excise HL 22-May-2003
The landlord had elected to waive exemption to charging VAT on its lettings. The tenant relet the demised premises, but at first without charging VAT. It later charged VAT on the sublease, but the commissioners objected to the attempt of the . .
Appeal from – Commissioners of Customs and Excise v Royal and Sun Alliance Insurance Group Plc ChD 2000
The taxpayer sought to recover tax it had paid on VAT on rents. It had sublet and at first not charged VAT, but later changed its mind and charged VAT. The Commissioners objected to the reclaim for the earlier period.
Held: The tribunal’s . .

Cited by:

Appeal from – Royal and Sun Alliance Insurance Group plc v Her Majesty’s Commissioners of Customs and Excise HL 22-May-2003
The landlord had elected to waive exemption to charging VAT on its lettings. The tenant relet the demised premises, but at first without charging VAT. It later charged VAT on the sublease, but the commissioners objected to the attempt of the . .
Lists of cited by and citing cases may be incomplete.

VAT, Landlord and Tenant

Updated: 08 May 2022; Ref: scu.166545

Regina v Commissioners of Customs and Excise Ex Greater Manchester Police: CA 13 Mar 2001

The police authority purchased new cars, and sought to reclaim the VAT paid. The case was brought by judicial review because no appeal lay against the refusal of the Commissioners to allow this. A government scheme was intended to allow publicly funded bodies to make reclaims of VAT notwithstanding that they were not registered for VAT. Since VAT registered bodies could not either make this particular reclaim on new car purchases. The scheme which blocked refund on certain items prevailed.

Citations:

Times 13-Mar-2001

Statutes:

Value Added Tax (Input Tax) Order 1992 (1992 No 3222)

Jurisdiction:

England and Wales

VAT, Police, Judicial Review

Updated: 08 May 2022; Ref: scu.88420

Proceedings Brought by Forsakringsaktiebolaget Skandia (Publ): CA 20 Mar 2001

For a transaction to be exempt from VAT as an insurance transaction there had to be some contractual relationship between the insured and the company providing the cover against the risk. Here there was no sufficient connection the insurance services were bought from one company and payments made to another.

Citations:

Times 20-Mar-2001, C-240/99

Statutes:

Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes

Jurisdiction:

England and Wales

VAT, Insurance

Updated: 08 May 2022; Ref: scu.85050

Minister Finansow v Wojskowa Agencja Mieszkaniowa W Warszawie: ECJ 16 Apr 2015

ECJ Judgment – Reference for a preliminary ruling – Taxation – Common system of value added tax – Letting of immovable property – Supply of electricity, heating, water and refuge collection – Agreements between the landlord and the suppliers of those goods and services – Supplies provided to the tenant considered to be provided by the landlord – Service charges – Determination of the taxable amount – Possibility of including service charges in the taxable amount of rental services – Transaction composed of a single supply or several independent supplies

Judges:

M Ilesic P

Citations:

C-42/14, [2015] EUECJ C-42/14, ECLI:EU:C:2015:229

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 08 May 2022; Ref: scu.545457

Han v Customs and Excise Commissioners: CA 2001

Citations:

[2001] 1 WLR 2253

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Khawaja ChD 17-Jul-2008
The court considered the standard of proof required before the Commissioners when considering the application of penalties.
Held: When challenging the assessment of a penalty on a taxpayer, there was no reason why the normal civil standard of . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 07 May 2022; Ref: scu.280413

Customs and Excise v McLean Homes (Midland) Ltd: 1993

Judges:

Brooke J

Citations:

[1993] STC 335

Jurisdiction:

England and Wales

Citing:

Dicta Applied – Brutus v Cozens HL 19-Jul-1972
The House was asked whether the conduct of the defendant at a tennis match at Wimbledon amounted to using ‘insulting words or behaviour’ whereby a breach of the peace was likely to be occasioned contrary to section 5. He went onto court 2, blew a . .

Cited by:

Cited – HM Revenue and Customs v Lt Cmdr Colin Stone; The Kei ChD 5-Jun-2008
The taxpayer had imported a newly built Dutch Barge. The Revenue appealed a decision that VAT was not payable on that import. He had claimed exemption on the basis that it was a ship exceeding 15 tons and not designed or adapted for leisure use.
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 07 May 2022; Ref: scu.268750

Peters v Revenue and Customs: VDT 9 Nov 2006

VAT charged on registration fees by British Waterways Board for the registration of a pleasure boat and grant of a pleasure boat certificate in respect of certain rivers under the management of the Board – whether VAT properly chargeable – public rights of navigation – effect of British Waterways Act 1971 – appeal dismissed.

Citations:

[2006] UKVAT V19876

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 May 2022; Ref: scu.246206

Kuwait Petroleum (GB) Ltd v Customs and Excise: ChD 20 Dec 2000

Judges:

Laddie J

Citations:

[2001] STC 62

Jurisdiction:

England and Wales

Cited by:

Not followed – Total UK Ltd v Revenue and Customs Commissioners ChD 3-Nov-2006
The taxpayers awarded gift vouchers to motorists purchasing fuel. They sought to deduct against their liability for VAT the cost of purchasing the vouchers.
Held: The taxpayer’s appeal succeeded. The court did not find the decision in Kuwait . .
Appeal from – Kuwait Petroleum (GB) Ltd v Customs and Excise CA 9-Mar-2001
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 07 May 2022; Ref: scu.247673

Total UK Ltd v Revenue and Customs Commissioners: ChD 3 Nov 2006

The taxpayers awarded gift vouchers to motorists purchasing fuel. They sought to deduct against their liability for VAT the cost of purchasing the vouchers.
Held: The taxpayer’s appeal succeeded. The court did not find the decision in Kuwait petroleum persuasive.

Judges:

Sir Andrew Park

Citations:

Times 08-Dec-2006

Statutes:

Value Added Tax Act 1994 2 19

Jurisdiction:

England and Wales

Citing:

Not followed – Kuwait Petroleum (GB) Ltd v Customs and Excise ChD 20-Dec-2000
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 07 May 2022; Ref: scu.247672

British Railways Board v Commissioners of Customs and Excise: CA 1977

The question of what is the supply, is, looking at all the circumstances objectively, what does the customer get, not why does he want it: ‘It cannot depend on the state of mind of any individual student by asking him or her: what did you pay the andpound;1.50 for? It must depend on the legal effect of the transaction considered in relation to the words of the statute. And that is a question of law.’

Judges:

Lord Denning, Browne

Citations:

[1977] CLY 3133, [1977] 1 WLR 588

Jurisdiction:

England and Wales

Cited by:

Dicta applid – British Airways Plc v Customs and Excise Commissioners 1990
The taxpayer carried paying passengers. The travel was zero-rated. They also supplied in-flight food, which the Commissioners sought to hold taxable as a separate supply.
Held: The motives of the tax-payer and traveller were irrelevant. The . .
Cited – College of Estate Management v Commissioners of Customs and Excise CA 11-Aug-2004
When offering courses to distance learning students, the College offered materials for the courses. As part of the course this supply would be exempt, as books, the supply would be zero-rated, but the taxpayer would be able to reclaim its VAT . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 06 May 2022; Ref: scu.196632

Commissioners of Customs and Excise v Popcorn House Ltd: 1968

Lawton J considered the meaning of ‘confectionery’
Held: The word took, from the context of its use, a special meaning. In accordance with the ordinary meaning of confectionery and was formed on the basis of the final part of Note (5). Confectionery is normally eaten with the fingers, is made with a cooking process and contains sweetening matter.

Judges:

Lawton J

Citations:

[1968] 3 All ER 782

VAT

Updated: 06 May 2022; Ref: scu.471643

Alfred Crompton Amusement Machines Ltd v Customs and Excise Commissioners: CA 1972

Legal advice given by employed lawyers to their employers, rather than lawyers in independent practice may be privileged before a tax tribunal.
Lord Denning MR justified the result primarily on the ground that, although the communications of a corporation with an in-house legal adviser were internal to the corporation, nevertheless the adviser was performing the same function as the lawyer in independent practice.

Judges:

Lord Denning MR

Citations:

[1972] 2 QB 102

Jurisdiction:

England and Wales

Cited by:

Cited – Prudential Plc and Another, Regina (on the Application of) v Special Commissioner of Income Tax and Another Admn 14-Oct-2009
The company had obtained legal advice but had taken it from their accountants. The Revenue sought its disclosure, and the company said that as legal advice it was protected by legal professional privilege.
Held: The material was not protected. . .
Appeal from – Alfred Crompton Amusement Machines Ltd v Customs and Excise Commissioners HL 1974
An application was made to inspect documents held by the Customs and Excise Commissioners. The plaintiff sought to inspect the documents to discover whether calculations of taxes were correct. The Commissioners swore an affidavit identifying . .
Cited – Prudential Plc and Another, Regina (on The Application of) v Special Commissioner of Income Tax and Another SC 23-Jan-2013
The appellants resisted disclosure to the revenue of advice it had received. It claimed legal advice privilege (LAP), though the advice was from its accountants.
Held: (Lords Sumption and Clarke dissenting) LAP applies to all communications . .
Lists of cited by and citing cases may be incomplete.

Legal Professions, VAT

Updated: 05 May 2022; Ref: scu.376222

Higher Education Statistics Agency Ltd v Commissioners of Customs and Excise: QBD 19 Apr 2000

When purchasing a business as a going concern, and land bought at auction was included, then in order to take the land purchase outside the scope of VAT, the ‘option to tax’ election and notification of that election had to be effected before the deposit was paid, and not merely before completion.

Citations:

Times 19-Apr-2000

Statutes:

VAT (Special Provisions) Order 1995 (1995 No 1268)

Jurisdiction:

England and Wales

VAT

Updated: 05 May 2022; Ref: scu.81370

Fitch v Revenue and Customs: VDT 14 Jul 2006

Practice – Evidence – Documents – Whether HMRC entitled to produce witness statements to which Appellant objects – Application for late service under Trib Rule 21 – No direction extending time – Objection by Appellant – Customs notified Appellant of intention to produce statements at appeal – Statements not in Customs’ List of Documents under Rule 21 – Relevance of Trib Rule 28(1) – Statements excluded

Citations:

[2006] UKVAT V19914

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.247528

Millennium Nails Ltd v Revenue and Customs: VDT 20 Nov 2006

VALUE ADDED TAX – EC Sales List rendered after due date – penalty for late submission – Appellant’s assertion that submitted on time – not support by any evidence – Appellant not represented at hearing – appeal dismissed.

Citations:

[2006] UKVAT V19900

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.247547

Lonie v Revenue and Customs: VDT 21 Nov 2006

VALUE ADDED TAX – zero-rating – equipment designed for handicapped persons – VATA 1994, s 30, Sch 8 Group 12 – chair with electrically operated reclining back rest – whether ‘designed solely for use by a handicapped person’ – no – appeal dismissed

Citations:

[2006] UKVAT V19901

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.247543

Ardenglen Developments Ltd v Revenue and Customs: VDT 22 Nov 2006

Zero Rating; first grant by a person constructing a building intended for use solely for a relevant charitable purpose; whether lease by company established by housing association to obtain funding a supply within section 30 and Schedule 8 Group 5 Item 1(a)(ii) of the Value Added Tax Act 1994; yes

Citations:

[2006] UKVAT V19906

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.247532

Metropolitan International Schools Ltd v Revenue and Customs: CA 14 Feb 2019

Interpretation of section 84(10) of the Value Added Tax Act 1994 What is at issue is whether section 84(10) enables the appellant, Metropolitan International Schools Limited, to advance a legitimate expectation claim in the context of appeals to the First-tier Tribunal rather than by way of judicial review.
Held: The appeal failed. Section 84(10) of the VATA is inapplicable both because HMRC’s view on whether the School should be granted a transitional period amounted to no more than a factor in their decision to assess and because the assessments could have been raised without HMRC reaching any decision on any legitimate expectation contention. The legitimate expectation point did not bear on whether there was ‘VAT chargeable’ or a liability to assess and, in the words of the UT, ‘HMRC had to deal with it first because it was raised in negotiation by the taxpayer, but it did not otherwise have to’. If the School wishes to pursue its legitimate expectation argument, it must seek to do so in its judicial review claim, not in the context of these proceedings.

Citations:

[2019] EWCA Civ 156

Links:

Bailii

Statutes:

Value Added Tax Act 1994 84(10)

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.633445

Ampleaward Ltd v Revenue and Customs: FTTTx 11 Dec 2018

Vat – Supply : Place of – ‘fall-back’ acquisition VAT where UK registered trader uses UK VAT registration to zero rate acquisitions into another member state – whether charge applies on acquisitions into bonded warehouses – yes – whether it is chargeable on taxpayer – yes – whether VAT is recoverable as input tax – no – appeal dismissed

Citations:

[2018] UKFTT 715 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 04 May 2022; Ref: scu.632426

Pegasus Birds Ltd v Customs and Excise: VDT 22 Oct 1997

The taxpayer asserted that the Commissioner’s assessment to VAT were out of time and had not been made to the inspector’s ‘best judgment’.

Citations:

Unreported 22 Oct 1997

Jurisdiction:

England and Wales

Cited by:

Appeal from – Pegasus Birds Ltd v H M Customs and Excise Admn 27-Nov-1998
The Excise Commissioners eventually issued an assessment to VAT in 1997 for 1993 after commencing their investigations in 1993.
Held: Section 73 did not operate as a full bar to the Commissioners making an assessment after the one year where . .
See Also – Pegasus Birds Ltd v Commissioners of Customs and Excise CA 10-Feb-2000
The company were said to have kept inadequate VAT Records. The parties disputed the sums due or evaded, and an assessment was only finally issued in 1997, at which point the taxpayer said that the assessment was out of time under section 73(6)(b). . .
See Also – Pegasus Birds Ltd v Customs and Excise VDT 7-Jun-2002
The Tribunal was asked whether an assessment to VAT notified to the Respondent Company, Pegasus Birds Limited and contained in a formal notice of assessment was made to best judgment.
Held: It was not. The Respondent’s appeal succeeded. . .
See Also – Commissioners of H M Customs and Excise v Pegasus Birds Limited ChD 7-Nov-2003
The Commissioners appealed from a decision of the Vat and Duties Tribunal . .
See Also – Pegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 04 May 2022; Ref: scu.577573

Pegasus Birds Ltd v Customs and Excise: VDT 7 Jun 2002

The Tribunal was asked whether an assessment to VAT notified to the Respondent Company, Pegasus Birds Limited and contained in a formal notice of assessment was made to best judgment.
Held: It was not. The Respondent’s appeal succeeded.

Judges:

Mr Theodore Wallace and Mr Cyril Shaw FCA

Citations:

Unreported, 7 Jun 2002

Jurisdiction:

England and Wales

Citing:

See Also – Pegasus Birds Ltd v Customs and Excise VDT 22-Oct-1997
The taxpayer asserted that the Commissioner’s assessment to VAT were out of time and had not been made to the inspector’s ‘best judgment’. . .
See Also – Pegasus Birds Ltd v H M Customs and Excise Admn 27-Nov-1998
The Excise Commissioners eventually issued an assessment to VAT in 1997 for 1993 after commencing their investigations in 1993.
Held: Section 73 did not operate as a full bar to the Commissioners making an assessment after the one year where . .
See Also – Pegasus Birds Ltd v Commissioners of Customs and Excise CA 10-Feb-2000
The company were said to have kept inadequate VAT Records. The parties disputed the sums due or evaded, and an assessment was only finally issued in 1997, at which point the taxpayer said that the assessment was out of time under section 73(6)(b). . .

Cited by:

Appeal from – Commissioners of H M Customs and Excise v Pegasus Birds Limited ChD 7-Nov-2003
The Commissioners appealed from a decision of the Vat and Duties Tribunal . .
At VDT – Pegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 04 May 2022; Ref: scu.577572

Maybeck Llp v Revenue and Customs: VDT 20 Nov 2006

VALUE ADDED TAX – input tax – professional fees incurred in the acquisition of a minority shareholding in a company providing services to the taxpayer – whether direct and immediate link with the taxpayer’s own activities or merely an investment – Cibo Participations and Kretztechnik applied – appeal allowed in principle

Citations:

[2006] UKVAT V19898

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 01 May 2022; Ref: scu.247545

Regina (International Masters Publishers Ltd) v Revenue and Customs Commissioners: QBD 19 Jan 2006

The taxpayer sold book with associated CDs. The respondent refused to apply the ESC 37 concession. There was doubt its capacity to do so, but the taxpayer first lodged an appeal. It now sought leave to apply for judicial review of the decision out of time.
Held: The applicant had been aware of the possibility of applying for judicial review from the start. It had instead lodged an appeal hoping to save costs. In those circumstances leave would be refused. The delay was substantial. The company should have notified the respondents of its doubts, and sought an agreement from the respondent to an extension of time to apply for a judicial review.

Citations:

Times 30-Jan-2006

Jurisdiction:

England and Wales

Citing:

See Also – International Masters Publishers Ltd v Revenue and Customs VDT 25-Apr-2005
SINGLE OR MULTIPLE SUPPLY – CD book as part of a series on classic composers comprising a CD and 12 pages of written material and illustrations – principal supply is that of the CD – appeal dismissed . .
Lists of cited by and citing cases may be incomplete.

VAT, Judicial Review

Updated: 01 May 2022; Ref: scu.238287

Commissioners of Customs and Excise v Hartwell Plc: QBD 2002

Motor traders gave customers a voucher to be set off against the cost of a replacement car and other services.
Held: Patten J said: ‘The Purchase Plus allowance is negotiated and agreed as a reduction by Hartwell in the amount which the customer will have to pay for the replacement car. No consideration is given for it. It is simply a concession made by the salesman as an inducement to the customer to purchase . . the use of the Purchase Plus Discount Note effectively as part payment of the balance of the purchase price is no different from the use of the coupons or vouchers which were considered in the Boots and the Elida Gibbs cases’.

Judges:

Patten J

Citations:

[2002] STC 22

Jurisdiction:

England and Wales

Cited by:

Appeal from – Commissioners of Customs and Excise v Hartwell Plc CA 12-Feb-2003
The taxpayers were motor traders. On agreeing a sale package with a customer, they issued to the customer a voucher worth more than the agreed trade-in value, to be used as credit against the purchase from the taxpayer. They also gave customers MOT . .
Cited – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 29 April 2022; Ref: scu.194835

Accounting Alliance Ltd v The Commissioners of Customs And Excise: VDT 14 Feb 2001

VDT DEFAULT SURCHARGE – Reasonable excuse – Application to Commissioners to stagger accounting periods – Letter of approval warned that return form may be issued under old regime – Meaning of letter not clear – Whether reasonable excuse – Appeal allowed – VATA 1994 s 59

Judges:

Angus Nicol (Chairman), Miss A West Fca

Citations:

LON/01/688-ACC NIC

Links:

VDT

Statutes:

Value Added Tax Act 1994 59

VAT

Updated: 28 April 2022; Ref: scu.174701

Lex Services plc v Commissioners of Customs and Excise; Customs and Excise Commissioners v Littlewoods Organisation Plc: CA 26 Oct 2001

The taxpayer took cars in part exchange on the sale of new cars. If the car was returned, the real value of the part exchange car was refunded. The taxpayer sought to be taxed on the real value of the car.
Held: The tax was payable on the actual value attributed by the parties to the part exchange car. The possibility of a later refund, was a different transaction.

Judges:

Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley

Citations:

Times 07-Nov-2001, Gazette 29-Nov-2001, [2001] STC 1568

Statutes:

Sixth Directive (77/388/EEC)

Jurisdiction:

England and Wales

Citing:

Appeal from – Lex Services Plc v Commissioners of Customs and Excise ChD 7-Sep-2000
The taxpayer took in cars in part exchange at a cost higher than the re-sale value. The Commissioners sought to collect VAT on the higher price as shown in the agreements, and the tax payer on the actual value.
Held: Where the parties . .

Cited by:

Appeal from – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 28 April 2022; Ref: scu.166842

Commissioners of Customs and Excise v Bugeja: CA 26 Oct 2001

A video shop sold videos for andpound;20.00. On a second sale, he would take the previously sold video back, and charge only andpound;10.00 on that second sale. The commissioners sought VAT on the basis that the price on each transaction was andpound;20.00. The true transaction was that the consideration for the supply of the replacement video was part money, andpound;10, and part goods, the return of the video previously sold. The relevant question was what was the monetary equivalent of the non-monetary element of the consideration provided by the customer in the context of the transaction which actually took place.

Judges:

Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley

Citations:

Times 15-Nov-2001, Gazette 29-Nov-2001

Jurisdiction:

England and Wales

VAT

Updated: 28 April 2022; Ref: scu.166808