VAT – single or multiple supply – whether dabber/marker pens supplied by bingo hall owner and used to mark paper bingo books integral part of exempt supply of bingo- no – separate supply of goods – appeal dismissed
References: [2015] UKFTT 536 (TC)
Links: Bailii
Jurisdiction: England and Wales

Last Update: 15 October 2020; Ref: scu.556146

Vat – Appeals : Applications Generally – APPEALS – procedure – directions – costs in transitional cases – whether
pre-2009 costs regime should apply – no – whether open to apply for appeals
to be allocated to Complex category – consideration of Appellants’
application for disclosure – refused – application by HMRC to re-amend Statement of case – additional ground proposed – consideration of factors – amendment agreed – other amendment to add first limb of Kittel test – amendment agreed – directions adjusted to take account of medical
treatment of Appellants’ director
References: [2015] UKFTT 481 (TC)
Links: Bailii
Jurisdiction: England and Wales

Last Update: 15 October 2020; Ref: scu.556134

References: Times 08-Jul-1999, C-158/98, [1999] STC 742, [1999] EUECJ C-158/98
Links: Bailii
Ratio: A cafe owner rented a table out to a drug dealer. He was charged VAT on the rent, but denied liability on the basis that it was an illegal activity and not taxable. However the renting itself was not unlawful either under national Netherlands law or International law. It was held that VAT was payable.
This case is cited by:

• Cited – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL (House of Lords, [2003] UKHL 67, Bailii, Gazette 22-Jan-04, [2004] STC 73, [2004] BVC 53, [2004] 1 WLR 1, [2003] STI 2274, [2004] RTR 18, [2003] BTC 5658, [2004] 1 All ER 434)
  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, . .

(This list may be incomplete)
Jurisdiction: European

Last Update: 13-Feb-17
Ref: 162375

References: [2016] UKUT 354 (TCC)
Links: Bailii
Ratio: UTTC VAT – zero-rating – construction by a rugby club of a clubhouse on a sportsground – whether intended for use ‘as a village hall or similarly in providing social or recreational facilities for a local community’ – VATA Sch 8, Group 5, item 2 and note 6(b) – Appeal refused
Jurisdiction: England and Wales

Last Update: 22-Nov-16
Ref: 570410

References: [2016] UKUT 373 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – exemption – whether dental payment plan administration services supplied to patients for consideration from 1 January 2012 exempt transactions concerning payments or transfers – whether services excluded from exemption as debt collection – CJEU decisions in Bookit II and NEC – whether to refer questions to CJEU – yes
Jurisdiction: England and Wales

Last Update: 21-Nov-16
Ref: 570418

References: [2016] UKUT 350 (TCC)
Links: Bailii
Ratio: UTTC VAT – MTIC fraud – whether FTT erred in law in its approach to the evidence and submissions – whether FTT erred in law in not giving proper weight to evidence of witnesses whose witness statements were unchallenged – whether FTT erred in law in refusing to admit certain evidence tracing money movements contained in a schedule evidenced in an unchallenged statement – whether FTT erred in law in making unspecified findings of fact
Jurisdiction: England and Wales

Last Update: 19-Nov-16
Ref: 570411

References: [2016] UKUT 362 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – MTIC appeal – finding of actual knowledge of connection of appellant’s transactions with fraud – whether HMRC’s case adequately pleaded – yes – whether allegations fairly put to appellant’s witness – yes – whether First-tier Tribunal’s conclusions open to it – yes – appeal dismissed see: [2014] UKFTT 241 (TC)
Jurisdiction: England and Wales

Last Update: 16-Nov-16
Ref: 570420

References: [2016] UKUT 315 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – whether single composite supply or multiple separate supplies – appeal dismissed
Jurisdiction: England and Wales

Last Update: 15-Nov-16
Ref: 570407

References: [2016] UKUT 417 (TCC)
Links: Bailii
Ratio: UTTC Value Added Tax – supplies of commercial waste collection services by Local Authorities – section 45(1)(b) Environmental Protection Act 2009 and section 41A Value Added Tax Act 1994 – whether supplies within VAT – judicial review of HMRC failure to collect VAT on supplies – preliminary issue – supplies within section 45(1)(b) not taxable
Statutes: Environmental Protection Act 2009 45(1)(b), Value Added Tax Act 1994 41A
Jurisdiction: England and Wales

Last Update: 11-Nov-16
Ref: 570421

References: [2016] UKUT 342 (TCC)
Links: Bailii
Ratio: UTTC Value added tax – input tax – whether transactions connected with fraud – whether First-Tier Tribunal conclusion procedurally unfair – whether appellant knew or should have known of connection with fraud
Jurisdiction: England and Wales

Last Update: 09-Nov-16
Ref: 570413

References: [2016] UKUT 316 (TCC)
Links: Bailii
Ratio: Value add tax – input tax – supplies purchased for the purposes of both generating revenue from activities outside the scope of VAT and making taxable supplies – entitlement of taxpayer to deduct – whether revenue based apportionment justified
Jurisdiction: England and Wales

Last Update: 05-Nov-16
Ref: 570414

References: [2016] UKUT 436 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – MTIC – transactions connected with fraud – whether appellant knew or ought to have known that transactions were connected with fraud -whether HMRC’s allegations involved an allegation of dishonesty – whether HMRC’s pleadings were adequate – whether FTT, [2014] UKFTT 963 (TC), dealt appropriately with the allegation – whether evidence of good character of director of appellant admissible – appeal dismissed
Jurisdiction: England and Wales

Last Update: 28-Oct-16
Ref: 570428

References: [2009] UKVAT V20926
Links: Bailii
Ratio: VDT VAT – SECURITY- Protection of Revenue — the Appellant’s director associated with three other businesses which had bad VAT compliance records – Appellant phoenix of another company that went into liquidation — Whether Respondents’ actions in requiring a security reasonable -Yes — Appeal dismissed — VAT ACT 1994 Schedule 11 p 4(1)
Jurisdiction: EW

Last Update: 11-Oct-16
Ref: 301745

References: [2013] UKFTT 597 (TC)
Links: Bailii
Ratio: FTTTx VAT – Default Surcharge – Whether claim under s 80 Value Added Tax Act 1994 made before or after due date – Whether reasonable excuse on facts

Last Update: 11-Oct-16
Ref: 517701

References: [2012] UKUT 187 (TCC)
Links: Bailii
Ratio: UTLC VALUE ADDED TAX – application to First-tier Tribunal for extension of time to appeal under section 83G(1) and (6) of Value Added Tax Act 1994 – legal test to be applied to application for extension of time – First-tier Tribunal applied correct legal test – decision not perverse – no error of law – appeal dismissed; – ‘Applications for extensions of time limits of various kinds are commonplace and the approach to be adopted is well established. As a general rule, when a court or tribunal is asked to extend a relevant time limit, the court or tribunal asks itself the following questions: (1) what is the purpose of the time limit? (2) how long was the delay? (3) is there a good explanation for the delay? (4) what will be the consequences for the parties of an extension of time? and (5) what will be the consequences for the parties of a refusal to extend time. The court or tribunal then makes its decision in the light of the answers to those questions.’
This case is cited by:

• Cited – Zorkova v Revenue & Customs FTTTx (Bailii, [2014] UKFTT 196 (TC))
  FTTTX PROCEDURE – application to strike out appeal against a refusal to restore a vehicle – appeal out of time – test in Data Select applied – application granted and proceedings struck out . .

(This list may be incomplete)

Last Update: 14-Aug-16
Ref: 462884

References: [2011] UKUT B5 (TCC), [2011] STI 635, [2011] BVC 1607
Links: Bailii
Ratio: UTTC EXEMPTION – Transactions treated as exports – Supplies within UK to other NATO states – Ship dismantling services by UK yard to US department managing Reserve Fleet of obsolete vessels – Whether for the armed forces of another NATO state – Whether exempt under Art 151(1)(c) of Principal VAT Directive – Matter referred to ECJ.

Last Update: 10-Aug-16
Ref: 440802

References: [2013] UKUT 393 (TCC)
Links: Bailii
Ratio: UTTC VAT – zero-rating – evidence of export of goods – whether First-tier Tribunal erred in law in finding that the conditions for zero-rating were met in respect of certain invoices – Principal VAT Directive, articles 131 and 146 – VATA 1994, s 30 – VAT Regulations 1995, reg 129 – VAT Notice 703 – appeal dismissed.

Last Update: 09-Aug-16
Ref: 521008

References: [2016] UKUT 278 (TCC)
Links: Bailii
Ratio: VAT – partial exemption – CVCP Agreement between universities and HMRC – Fleming claim to recover residual VAT on overheads of academic departments – whether HMRC approved a new non – CVCP retrospective partial exemption special method (PESM) from 1973 to 1994- whether a combined PESM and business/non-business method was ultra vires – FTT held a new non-CVCP retrospective PESM had been approved and was not ultra vires – HMRC appeal to the Upper Tribunal – appeal dismissed

Last Update: 02-Aug-16
Ref: 567358

References: [2016] UKUT 333 (TCC)
Links: Bailii
Ratio: Ordr

Last Update: 01-Aug-16
Ref: 567367

References: [2016] UKUT 294 (TCC)
Links: Bailii
Ratio: 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

Last Update: 01-Aug-16
Ref: 567362

References: [2016] UKUT 189 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – option to tax- whether supply of land taxable at standard rate because option to tax validly exercised – whether prior permission from HMRC required for late election – whether HMRC can validly dispense with this requirement for prior permission – paragraph 3 (9) and paragraph 30 Schedule 10 Value Added Tax Act 1994. Appeal against the decision: [2014] UKFTT 646 (TC)

Last Update: 01-Aug-16
Ref: 567344

References: [2016] UKUT 274 (TCC)
Links: Bailii
Ratio: VAT – MTIC – transactions connected with fraud – transactions effected by agent – agent knew or ought to have known that transactions were connected with fraud – whether knowledge of agent to be attributed to principal – preliminary issue on assumed facts

Last Update: 01-Aug-16
Ref: 567356

References: [2016] UKUT 263 (TCC)
Links: Bailii
Ratio: UTTC VALUE ADDED TAX – whether section 80 VAT Act 1994 applies to claim to enforce directly effective right under article 11C(1) Sixth Directive to reduce taxable amounts to reflect rebates paid in periods before it was implemented in UK legislation – if so, whether claim made within time limit in section 80(4) – whether regulation 38 VAT Regulations 1995 can be adapted or moulded to allow adjustment to reflect reduction in taxable amounts at any time – whether FTT has jurisdiction to determine claim – appeal allowed

Last Update: 31-Jul-16
Ref: 567359

References: [2016] UKUT 209 (TCC)
Links: Bailii
Ratio: UTTC Claims for repayment of VAT – whether further claims for refunds were amendments to an earlier claim made within the time prescribed by s. 121 Finance Act 2008, or were separate claims out of time and barred by s. 80(4) Value Added Tax Act 1994 – held that the claims were separate claims and out of time – appeal dismissed.

Last Update: 30-Jul-16
Ref: 567353

References: [2012] UKUT 90 (TCC)
Links: Bailii
Coram: Morgan J
Ratio: UTTC VALUE ADDED TAX – margin scheme for second-hand goods – arrangement by which motor dealer raised finance and became able to sell demonstrator cars within margin scheme – whether abusive – yes – appeal allowed
Statutes: First Council Directive on VAT, 67/227/EEC 2
This case cites:

• Appeal from – Pendragon Plc and Others -v- Revenue & Customs FTTTx (Bailii, [2009] UKFTT 192 (TC))
  FTTTx VAT- financing involving sale of business – Abuse? No financing transaction as going concern which gave margin treatment – Appeal allowed . .

(This list may be incomplete)
This case is cited by:

• Appeal from – Pendragon Plc and Others -v- HM Revenue and Customs CA (Bailii, [2013] EWCA Civ 868)
  The Revenue had imposed a penalty on the appellants saying that their arrangement for the sale and VAT taxation of demonstrator cars was, in European law terms. The taxpayer sought re-instatment of the First Tier Tribunal judgment in its favour.
  
• At UTTC – Revenue and Customs -v- Pendragon Plc and Others SC (Bailii, [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, Bailii Summary, WLRD, UKSC 2013/0197, SC, SC Summary, SC Video)
  ‘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 . .

(This list may be incomplete)

Last Update: 06-Jul-16
Ref: 452895

References: [2012] UKUT 18 (TCC), [2012] STC 1056
Links: Bailii
Coram: Warren J P
Ratio: UTCC INPUT TAX – MTIC fraud – whether agent’s knowledge attributed to company – yes-appeal allowed
Greener Solutions sought repayment of the input tax incurred in respect of mobile telephones it had bought and then exported. The individual who had effected all the relevant transactions on behalf of GSL was Oliver Murray. Murray knew of the fraud committed by Jag-Tec, the missing trader. The question was whether his knowledge should be imputed to GSL.
Held: It should be because Murray had effectively implemented the fraud on behalf of GSL but the fraud was not aimed at GSL.
This case cites:

• Appeal from – Greener Solutions Ltd -v- Revenue & Customs FTTTx (Bailii, [2010] UKFTT 412 (TC))
  FTTTx INPUT TAX – MTIC fraud – whether agent’s knowledge attributed to company – no – whether company should have known of connection to fraud – no – appeal allowed . .

(This list may be incomplete)
This case is cited by:

• Cited – Jetivia Sa and Another -v- Bilta (UK) Ltd and Others CA (Bailii, [2013] EWCA Civ 968, [2013] WLR(D) 333, [2014] 1 All ER (Comm) 176, [2013] 3 WLR 1167, [2014] 1 All ER 168, [2014] Ch 52, [2013] STI 2677, [2013] BCC 655, [2014] 1 BCLC 302, [2014] 1 Lloyd’s Rep 113, [2013] Lloyd’s Rep FC 620, [2013] STC 2298)
  Defendants appealed against refusal of their request for a summary striking out of the claims against them arising from their management of the insolvency of the first defendant. . .
• Cited – Bilta (Uk) Ltd and Others -v- Nazir and Others ChD ([2012] STC 2424, Bailii, [2012] EWHC 2163 (Ch), [2012] WLR(D) 236, [2013] 2 WLR 825, [2013] 1 All ER 375, [2013] BCC 235, [2012] STI 2554)
  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 formaer directors and associates. . .

(This list may be incomplete)

Last Update: 22-Jun-16
Ref: 452885

References: [2015] UKUT 605 (TCC)
Links: Bailii
Ratio: UTTC VAT – supply of cars – value of supply – whether entitled to use purchase price of identical imported cars – computation of cost price – reliance on schedules of calculations produced during hearing

Last Update: 06-Jun-16
Ref: 558955

References: [2015] UKUT 219 (TCC)
Links: Bailii
UTTC Ratio Appeal against Lower Tribunal to strike out evidence served by HMRC as to the conviction of other companies and parties of participating in a Missing Trader Fraud – Burden of proof and weight to be given to such evidence – allegation of bad faith whether it imports allegation of dishonesty

Last Update: 31-May-16
Ref: 549099

References: [2016] UKUT 90 (TCC)
Links: Bailii
UTTC Ratio VALUE ADDED TAX – repayment claims – VATA s 80, VAT Regs reg 37 – whether intimation of claim without particulars satisfies statutory requirements – no – whether claim must be allocated to prescribed accounting periods – yes – no claim within statutory meaning made

Last Update: 09-May-16
Ref: 562425

References: [2016] UKUT 89 (TCC)
Links: Bailii
UTTC Ratio VALUE ADDED TAX – claim for repayment of overpaid output tax – VATA s 80 – VAT Regs reg 37 – whether claim can be amended by complete substitution of reasons – no – claim must remain substantially unchanged – appeal allowed

Last Update: 07-May-16
Ref: 562427

References: [2016] UKUT 69 (TCC)
Links: Bailii
UTTC Ratio VALUE ADDED TAX – input tax -whether Appellant carrying on economic activity – UK management company providing management services to overseas subsidiaries – no agreement on amount of consideration to be paid by subsidiaries – whether taxable supplies made – no – appeal dismissed

Last Update: 06-May-16
Ref: 562422

References: [2016] UKUT 88 (TCC)
Links: Bailii
UTTC Ratio VALUE ADDED TAX: default penalty surcharge; payments on account regime; effect of increase in threshold; meaning of ‘basic period’ in art 2 of payments on account order; whether non-availability of 7 days additional time to pay breaches EU principle of equal treatment; reasonable excuse for material default

Last Update: 04-May-16
Ref: 562421

References: [2014] UKUT 453 (TCC)
Links: Bailii
UTTC Ratio VALUE ADDED TAX – input tax – DIY Builders Scheme – construction of dwelling as equestrian facilities managers residence – whether designed as a dwelling for purposes of Group 8 of Schedule 5 VAT Act 1994 – whether description in planning application as equestrian facilities managers residence prohibited separate use of dwelling – no – whether planning permission condition that occupation of dwelling be limited to person solely employed by the equestrian business and any resident dependants prohibited separate use of dwelling – yes – appeal allowed

Last Update: 20-Apr-16
Ref: 539405

References: [2015] UKFTT 641 (TC)
Links: Bailii
FTTTx VAT – company under common ownership with appellant starting to carry on appellant’s business and appellant ceasing to carry it on – were goods of the business transferred and therefore deemed supply of goods? – no — appeal stayed to determine consequences of deemed supply of services
Last Update: 14-Jan-16 Ref: 557164

References: [2015] UKFTT 671 (TC)
Links: Bailii
FTTTx VAT – input tax – legal fees – prosecution of a director – disallowed – taxable person – property consultancy – allowed
Last Update: 26-Dec-15 Ref: 557191

References: [2015] UKFTT 667 (TC)
Links: Bailii
FTTTx VAT – tripartite situation – car hire company arranging for repair of third parties’ vehicles damaged in collisions with hired cars-whether car hire company entitled to recover VAT on car repair invoices – Baxi, Aimia and WHA applied – whether economic reality inconsistent with contractual position – yes – appeal dismissed
Last Update: 26-Dec-15 Ref: 557194

References: [2015] UKFTT 648 (TC)
Links: Bailii
FTTTx VAT – penalty notice under Para 39 and 46 of Schedule 36 Finance Act 2008 for non-compliance with an Information Notice – whether reasonable excuse – no – appeal dismissed
Last Update: 26-Dec-15 Ref: 557188

References: [2015] UKFTT 4696 (TC)
Links: Bailii
FTTTx VAT – default surcharge – whether reasonable excuse – no – whether penalty disproportionate – no – appeal dismissed.
Last Update: 26-Dec-15 Ref: 557187

References: [2015] UKUT 468 (TCC)
Links: Bailii
VALUE ADDED TAX – Edwards v Bairstow – jurisdiction of Upper Tribunal – appeal against refusal of claim for repayment of overpaid VAT – whether FTT entitled not to find or infer that car dealer had accounted for VAT on bonuses paid by manufacturers to dealer on purchase of demonstrator and courtesy cars in claim periods – appeal dismissed
Last Update: 16-Oct-15 Ref: 553201

References: [2015] UKUT 419 (TCC)
Links: Bailii
UTTC VALUE ADDED TAX – Missing Trader Intra-Community Fraud – whether taxable person should have known that its transactions were connected to fraud – whether deliberate failure to ask questions where taxable person aware of risk of fraud satisfies should have known test – Axel Kittel v Belgian State and Mobilx v HMRC considered – appeal dismissed
Last Update: 16-Oct-15 Ref: 553199

References: [2015] UKUT 0421 (TCC)
Links: Bailii
VAT – default surcharge – taxable person required to make payments on account – s 59A VATA 1994 – proportionality – Enersys, Total Technology considered
Last Update: 16-Oct-15 Ref: 553197

References: [2015] UKUT 405 (TCC)
Links: Bailii
UTTC VALUE ADDED TAX – exemption – sports services – partnership transferred golf club business to non-profit making companies and leased golf course to companies for turnover rent – abuse of law – jurisdiction of Upper Tribunal in abuse of law appeals – burden of proof in abuse of law cases – whether arrangements an abuse of law – yes – appeal dismissed PROCEDURE – application for permission to rely on new ground of appeal not argued in FTT – application refused COSTS – Sheldon practice – whether case fell within exceptions to practice – whether HMRC entitled to add to list of exceptions – whether FTT wrong to reject Appellants’ criticisms of Respondents’ conduct of case when considering costs – appeal dismissed
Last Update: 16-Oct-15 Ref: 553190

References: [2015] UKUT 378 (TCC)
Links: Bailii
UTTC VAT – place of supply – organisation of enclosure at Farnborough Airshow – whether advertising services or services relating to activities similar to cultural, artistic, sporting etc activities
Last Update: 16-Oct-15 Ref: 553191

References: [2015] UKUT 0341 (TCC)
Links: Bailii
UTTC VAT – whether transfer of a business to a company that was a member of a VAT group was a transfer of a going concern (TOGC) – after transfer supplies made only to other group company – art 5, Value Added Tax (Special Provisions) Order 1995 – s 43, VATA – Principal VAT Directive, Arts 11, 19 and 29
Last Update: 16-Oct-15 Ref: 553188

References: [2015] UKUT 343 (TCC)
Links: Bailii
UTTC VAT – whether face-value vouchers issued by appellant companies constitute ‘any 5 security for money’ within Item 1 Group 5 Schedule 9 to VATA 1994 – yes – whether services supplied by clubs in return for commission charged on redemption of vouchers are services of dealing with security for money – no – redemption of vouchers held to be part of composite taxable supply of performance facilitation services by appellants – appeals dismissed
Last Update: 16-Oct-15 Ref: 553193

References: [2014] UKUT 28 (TCC)
Links: Bailii
UTTC Value Added Tax – input tax – disallowance of input tax – MTIC fraud – whether Appellant should have known that its purchase was connected with fraud

References: [2011] UKUT 131 (TCC)
Links: Bailii
UTTC INPUT TAX – Capital goods scheme – Adjustment – Decrease in use of capital item in making taxable supplies – College makes educational supplies – College incurred capital expenditure on building extension to premises – College leased premises to tenant company – Opted to tax premises – College took lease back from tenant company – After initial period tenant company struck off register and lease became bona vacantia – No rent paid after initial period – Whether adjustment to relief for input tax required by change of use – Appeal dismissed – VAT Act 1994 s24(1) and reg 115(2) of Gen Regs

References: [2013] UKUT 599 (TCC), [2014] STC 956, [2014] BVC 502
Links: Bailii
UTTC VAT – MTIC fraud – (1) whether First-tier Tribunal erred in law in applying the Kittel principle as interpreted by the court of appeal in Mobilx – whether that interpretation is open to doubt by subsequent CJEU judgments – Mahageben and David; Toth; Bonik; LVK-56 – no – (2) whether conclusions drawn by First-tier Tribunal from its findings of fact were irrational – no – appeal dismissed and application for reference to CJEU refused

References: [2013] UKUT 595 (TCC), [2014] STC 608, [2013] BVC 1852
Links: Bailii
UTTC Value Added Tax – input tax – repayment supplement – whether repayment supplement payable in respect of VAT credit claimed other than in VAT return

References: [2009] UKFTT 135 (TC)
Links: Bailii
FTTTx VAT – supply by Appellant of face value vouchers to its employees under contracts of employment – is art. 2(1) of Sixth Directive [now art. 2(1)(a) of Principal VAT Directive] to be interpreted as indicating that provision of vouchers constitutes a supply of services for consideration? – if no, is art. 6(2)(b) [now art. 26(1)(b)] to be interpreted as requiring provision of vouchers to be treated as supply of services where vouchers to be used by employees for private purposes? – if provision of vouchers neither supply of services for consideration within art. 2(1) nor is to be treated as supply of services under art 6(2)(b), is art. 17(2) to be interpreted as permitting employer to recover VAT incurred in purchasing and providing vouchers to employees in circumstances where vouchers to be used for employees’ private purposes – reference to ECJ of all 3 questions

References: [2013] UKUT 162 (TCC)
Links: Bailii
UTTC VAT – zero rating – aircraft for use by disabled persons – whether aircraft modified for use by disabled persons after manufacture are ‘ designed’ for such use – held yes but one aircraft not so designed at time of supply – whether Respondent is a ‘ relevant establishment’ for the purposes of Group 15 to Schedule 8 VAT Act 1994 – held no – whether Tribunal has jurisdiction to decide whether appellant had legitimate expectation – held no – appeal allowed in relation to one aircraft and dismissed in relation to the other

References: [2012] UKUT 418 (TCC)
Links: Bailii
UTTC VAT Default surcharge – penalty of £4,260.26 – whether disproportionate- no – principles to be taken into account by Tribunal

References: [2009] UKFTT 51 (TC)
Links: Bailii
VAT Penalties – DEFAULT SURCHARGE – reasonable excuse – appeal dismissed.

References: [2011] UKUT 259 (TCC)
Links: Bailii
Coram: Newey J
UTTC VALUE ADDED TAX – input tax repayment claim – MTIC fraud – contra-traders – whether Appellant knew or should have known that its transactions were connected with fraud.

References: [2013] UKUT 130 (TCC)
Links: Bailii
UTTC Value Added Tax – claim to repayment of output tax allegedly overpaid – whether services provided by Appellant Association to its members exempt under Value Added Tax Act 1994, Schedule 9, Group 9, Item 1(d) – whether primary purpose of Association was lobbying – whether any exemption under Item 1(d) disapplied by Note 5 – whether membership of Association restricted in accordance with Note 5 – whether defence to repayment of allegedly overpaid output tax on the ground of unjust enrichment

References: [2013] UKUT 57 (TCC), FTC/40/2011
Links: Bailii
UTTC VAT – s 81(3A) VAT Act 1994 – claim for repayment of overpaid output tax where irrecoverable repayments had been wrongly made of input tax attributable to other fiscal years. Claim denied and appeal dismissed.’
Statutes: Vale Added Tax Act 1994 81(3A)

References: [2013] UKUT 109 (TCC), FTC/39/2011
Links: Bailii
UTTC Value added tax (VAT) – what constitutes a new claim as compared to an amended claim under VATA section 80 – whether HMRC can rely on a defence of unjust enrichment in relation to claims made after 26 May 2005 – application of EU principles of effectiveness, equal treatment and fiscal neutrality.’

References: [2013] UKUT 6 (TCC)
Links: Bailii
UTTC Value Added Tax – Whether original agreement for supply of cars discharged by subsequent agreement – Question of fact remitted by the Court of Appeal for determination by the First-tier Tribunal – Whether material error of law in determination of that question by the FTT – No – Appeal dismissed

References: [2011] UKUT 497 (TCC)
Links: Bailii
Coram: Wallace, Clark TJJ
VAT – input tax – absence of valid invoices – refusal by HMRC to allow input tax claims – absence of reconsideration – whether original decision reasonable – finding by FTT that unreasonable – conclusion by FTT that decision would have been the same had HMRC acted reasonably – nature of jurisdiction – whether FTT’s finding that supplies were made in relevant transactions was perverse – unclear what matters taken into account in arriving at that finding – appeal remitted to FTT to make appropriate findings.

References: [2013] UKUT 71 (TCC), FTC/67/2011
Links: Bailii
UTTC VAT – Whether First-tier Tribunal had jurisdiction to consider legitimate expectation to recover pre-registration input tax on supply of services – No – decision of First-tier Tribunal allowing taxpayer’s appeal reversed

References: [2013] UKUT 173 (TCC)
Links: Bailii
UTTC VAT -whether First-tier Tribunal erred in concluding that membership fees recovered after access to club’s facilities had been denied due to non-payment were not consideration for a supply but compensation – held yes – appeal allowed

References: [2013] UKUT 160 (TCC)
Links: Bailii
UTTC Value Added Tax; supply of goods; business gift; disposal otherwise than for a consideration; supply by football association of end of season medals to league division points champion clubs; whether output tax payable on the value of such medals – yes; or whether accounted for by output on membership, sponsorship, copyright royalties, and/or broadcasting fees; no; Value Added Tax 1994 Schedule 4, paragraph 5; Principal VAT Directive 2006/112/EC Article 16.

References: [2012] UKUT 394 (TCC)
Links: Bailii
UTTC VAT – partial exemption special method – hire purchase transactions – taxable supplies of motor vehicles and exempt supplies of credit – whether residual cost inputs have a direct and immediate link with and are cost components of taxable supplies of motor vehicles – whether a methodology which attributes 50% of residual input tax to taxable supplies is fair and reasonable.

References: [2012] UKUT 359 (TCC), FTC/87/2011
Links: Bailii
UTTc Value Added Tax – were storage units immovable property? – held no – was right to store goods in units exempt supply of licence to occupy land or standard rated supply of storage services? – held if units were immovable property then exempt supply of licence to occupy land otherwise standard rated supply of storage services – was single supply a supply of licence to occupy land or of storage services? – held single supply of storage services – appeal allowed.

References: [2012] UKUT 131 (TCC)
Links: Bailii
Coram: Berner, Aleksander TJJ
UTTC VALUE ADDED TAX – supply of parking control services – whether parking charges collected and retained by operator were consideration for a supply – whether outside the scope of VAT as damages for trespass or damages for breach of a contract between the operator and the motorist – whether additional consideration payable by landowner for provision of parking control services – appeal dismissed

References: [2003] UKHL 67, Gazette 22-Jan-2004, [2004] STC 73
Links: House of Lords, Bailii
Coram: Lord Nicholls of Birkenhead, Lord Steyn, Lord Hoffmann, Lord Millett, Lord Walker of Gestingthorpe
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, but then submitted a rebate claim based upon the market value, the ‘non-monetary consideration’, which was a ‘subjective value’, in this case the value which the parties had expressly adoptd adopted to the goods on th first sale. The value of a part-exchange car was to be taken to be the full part-exchange price as agreed and not ‘true value’. That latter value served only to limit any possible refund. The part-exchange price could not properly be characterised as part of a discount on the price of the replacement car. Appeal dismissed
Statutes: Sixth Directive (77/388/EEC)
This case cites:

• Appeal from – Lex Services plc -v- Commissioners of Customs and Excise; Customs & Excise Commissioners v Littlewoods Organisation Plc CA (Times 07-Nov-01, Gazette 29-Nov-01, [2001] STC 1568)
  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 . .
• Cited – Staatsecretaris Van Financien -v- Cooperatieve Aardappelenbewaarplaats ECJ ([1981] ECR 445, C-154/80, R-154/80, Bailii, [1981] EUECJ R-154/80)
  (The Dutch Potato case) A farmers’ cooperative owned a refrigerated potato store. During 1975 and 1976 it came to be unnecessary, because it was planning to sell the store, to levy the usual storage charges on its members. Dutch tax officials . .
• Cited – Argos Distributors -v- Commissioners of Customs & Excise ECJ (Times 18-Nov-96, Europa, C-288/94, [1996] STC 1359, [1996] ECR I-5311, Bailii, [1996] EUECJ C-288/94, [1997] QB 499)
  VAT was payable on the value of a discount voucher only, and not on the full price of the goods. ‘According to the court’s settled case law, the taxable amount for the supply of goods or services is represented by the consideration actually received . .
• Cited – C R Smith Glaziers (Dunfermline) Limited -v- Commissioners of Customs and Excise HL (House of Lords, Times 21-Feb-03, Bailii, [2003] UKHL 7, [2003] STC 419)
  The taxpayer sold double glazing, supported by an insured guarantee, for which a charge was made. The additional charge was exempt, but it was contended that the contract should have stated the amount pursuant to Note 5.
  Held: The contract . .
• Cited – Naturally Yours Cosmetics Ltd -v- Commissioners of Customs and Excise ECJ (Europa, C-230/87, [1988] ECR 6365)
  A cosmetics wholesaler offered to a beauty consultant, acting as retailer, a pot of rejuvenating cream at the special price of £1.50. The consultant was to give the cream to a chosen retail customer (referred to as a hostess) as a reward for . .
• Cited – Rosgill Group Ltd -v- Commissioners of Customs and Excise CA (Times 30-Apr-97, Bailii, [1997] EWCA Civ 1502)
  A party hostess had been allowed to buy for £20.76 a blouse with a catalogue price of £27.99.
  Held: The monetary equivalent of the consideration for the hostess’s services in arranging the party was the difference £7.23: ‘The . .
• Cited – Empire Stores -v- Commissioners of Customs and Excise ECJ (Times 08-Jul-94, Europa, C-33/93, [1994] ECR – I 2329, Bailii, [1994] EUECJ C-33/93)
  A retail mail-order supplier, had run two promotions, a ‘self-introduction’ scheme and a ‘introduce a friend’ scheme. Under either scheme the introducer (once she or her friend had been approved, placed an order and paid for it) became entitled to . .
• Cited – Commissioners of Customs & Excise -v- Westmorland Motorway Services Ltd CA (Times 05-Feb-98, [1998] STC 431)
  Westmorland ran motorway service stations. Its practice, known to coach drivers, was to provide, without payment, a packet of cigarettes and a self-service meal (chosen from its usual menu) to any coach driver who brought a coach with at least . .
• Cited – Rompelman -v- Minister van Financien (Judgment) ECJ (Europa, C-268/83, [1985] ECR I-655)
  A trader who decided to acquire property for letting could claim repayment of VAT on the cost of a right to acquire a building which had not yet been constructed, let alone tenanted. . .
• Cited – Elida Gibbs Ltd -v- Commissioners of Customs and Excise ECJ (Times 12-Nov-96, Europa, Case C-317/94, [1996] STC 1387)
  VAT is chargeable only on the price of goods as discounted to agents.
  Europa Where (a) a manufacturer issues a money-off coupon, which is redeemable at the amount stated on the coupon by or at the expense . .
• Cited – Jennifer Gregg and Mervyn Gregg -v- Commissioners of Customs and Excise ECJ (Times 19-Oct-99, Europa, C-216/97, [1999] STC 934, Bailii, [1999] EUECJ C-216/97)
  For the purposes of Value Added Tax, the terms ‘Establishments’ and ‘organisations’ did not only refer to legal entities as such, but included natural persons, and in this case, particularly, partnerships. Accordingly a partnership running a nursing . .
• Cited – Staatssecretaris van Financien -v- Coffeeshop ‘Siberie’ vof ECJ (Times 08-Jul-99, Europa, C-158/98, [1999] STC 742, Bailii, [1999] EUECJ C-158/98)
  A cafe owner rented a table out to a drug dealer. He was charged VAT on the rent, but denied liability on the basis that it was an illegal activity and not taxable. However the renting itself was not unlawful either under national Netherlands law or . .
• Cited – BLP Group -v- Commissioners of Customs & Excise ECJ (Times 17-Apr-95, Europa, C-4/94, [1995] ECR I-983, [1996] 1 WLR 174, [1995] STC 424, Bailii, [1995] EUECJ C-4/94)
  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 . .
• Cited – Mirror Group plc -v- Commissioners of Customs and Excise, Cantor Fitzgerald International -v- Same ECJ (Europa, Europa, Times 07-Nov-01, C-409/98, C-108/99, [2002] QB 546, [2001] STC 1453, Bailii, [2001] EUECJ C-108/99, Bailii, [2001] EUECJ C-409/98)
  A potential lessee who did not have an interest in immovable property agreed to take a lease in return for money paid by the landlord. The transaction was not exempt from value-added tax under article 13(B)(b) as ‘the leasing or letting of immovable . .
• Cited – Commissioners of Customs and Excise -v- Hartwell Plc QBD ([2002] STC 22)
  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 . .
• Cited – Commissioners of Customs and Excise -v- Hartwell Plc CA (Bailii, [2003] EWCA Civ 130, Gazette 03-Apr-03, Times 17-Jun-03, [2003] STC 396)
  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 – Kuwait Petroleum (GB) Ltd -v- Commissioners of Customs and Excise ECJ (Times 14-May-99, Europa, C-48/97, [1999] STC 488, Bailii, [1999] EUECJ C-48/97)
  ‘Items’ described as gifts’ which Kuwait Petroleum exchanged under a petrol promotion scheme for vouchers received by customers purchasing petrol were issued ‘free of charge’. The purchase of petrol and the exchange of vouchers for gifts were . .
• Cited – Boots Company plc -v- Commissioners of Customs and Excise ECJ (Europa, C-126/88, [1990] STC 387)
  In the simple case of a voucher which the issuer himself redeems by allowing a discount on a purchase from himself, the voucher is not property but is simply evidence of an obligation to give a discount. . .
• At first instance – Lex Services Plc -v- Commissioners of Customs and Excise ChD (Times 17-Oct-00, Gazette 07-Sep-00, [2000] STC 697)
  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 – Investors Compensation Scheme Ltd -v- West Bromwich Building Society HL (Times 24-Jun-97, House of Lords, Bailii, [1997] UKHL 28, [1998] 1 All ER 98, [1998] 1 WLR 896, [1998] AC 896)
  The respondent gave advice on home income plans. The individual claimants had assigned their initial claims to the scheme, but later sought also to have their mortgages in favour of the respondent set aside.
  Held: Investors having once . .

(This list may be incomplete)
This case is cited by:

• Cited – Revenue and Customs -v- Debenhams Retail Plc CA (Bailii, [2005] EWCA Civ 892, Times 26-Jul-05)
  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 . .

(This list may be incomplete)
Last Update: 03-Mar-16 Ref: 188433

References: [2012] UKUT 106 (TCC)
Links: Bailii
UTTC VALUE ADDED TAX – evidence of export – whether First-tier Tribunal applied correct legal test – despite incorrect statement, yes – whether tribunal’s findings of fact supported by evidence – yes – appeal dismissed

References: [2013] UKUT 247 (TCC)
Links: Bailii
UTTC VAT – supply of disposable barbecues – whether VAT chargeable at a reduced rate on the charcoal element of the supply – reduced rate of VAT on solid fuel pursuant to Schedule 7A Group 1 Item 1(a) VATA 1994 – Commission v France Case C-94/09 considered – interaction with Card Protection Plan v C & E Case C-349/96 considered – significance of charcoal being a concrete and specific aspect of the supply – appeal dismissed.

References: [2010] UKUT 404 (TCC), [2011] STC 239, [2010] STI 3248, [2010] BVC 1587
Links: Bailii
UTTC INPUT TAX – tripartite agreement entered into by the Respondent, a number of financial institutions and PricewaterhouseCoopers whose fee was to be paid for by the Respondent-whether input tax of the Respondent – no -appeal allowed.
This case cites:

• Appeal from – Airtours Holiday Transport Ltd -v- Revenue & Customs FTTTx (Bailii, [2009] UKFTT 256 (TC), [2010] BVC 2117, [2010] STI 1479)
  VAT – deduction of input tax – did the paying party receive a supply – yes – appeal allowed. . .

References: [2010] UKUT B25 (TCC)
Links: Bailii
UTTC Value Added Tax – Land and Property – Holiday home – Associated companies supplying land and building services – Nature of supplies – Whether separate supplies of land and construction services – Yes – Whether abusive practice – Halifax [2005] STC 919 considered – Single supply of completed holiday homes – No – Proper Comparator – Appeal allowed.

References: [2012] UKUT 50 (TCC)
Links: Bailii
Coram: Roth J
UTTC VALUE ADDED TAX – input tax – MTIC and contra-trading – whether connection to fraudulent trading as condition of denial of right to deduct input tax requires privity of contract with fraudulent trader – test in Kittel and Recolta Recycling – whether English mistranslation of French text of the judgment – whether to refer question to ECJ – application of Court of Appeal judgment in Mobilx

References: [2010] UKUT 26 (TCC)
Links: Bailii
UTTC VAT – Single or multiple supplies – test where no single principal supply – land exemption – supply of hall with play equipment for children s parties.

References: [2012] UKUT 111 (TCC)
Links: Bailii
UTTC VALUE ADDED TAX – option to tax land – whether option survived partnership changes – whether one partnership or two – First-tier Tribunal apparently decided only one – whether tribunal’s findings of fact supported by evidence – unclear – appeal remitted to First-tier Tribunal for re-hearing

References: [2012] UKUT 259
Links: Bailii
Coram: Berner, Herrington TJJ
UTTC VAT – MTIC – whether First-tier Tribunal misdirected itself on the meaning of the ‘only reasonable explanation’ test and took too broad an approach – Kittel – Mobilx – whether trader should be prevented from relying on the legality of his transactions only to the extent that, had he conducted perfect due diligence on his suppliers, such due diligence would have indicated the fraud – Livewire considered – alleged reliance by trader on representations made by HMRC

References: [2012] UKUT 377 (TCC), FTC/36/2011
Links: Bailii
UTTC VAT – Exempt services – Item 1(d) of Group 9 of Schedule 9 VATA 1994 – Whether membership subscriptions of a trade association constitute exempt supplies – Case remitted to First-tier Tribunal for further findings of fact – Appeal allowed to that extent

References: [2011] UKUT 432 (TCC)
Links: Bailii
UTTC VALUE ADDED TAX – Zero-rating – Whether product zero-rated as food or standard-rated as beverage – Value Added Tax Act 1994, Schedule 8, Group 1, excepted item 4.

References: [2012] UKUT 105 (TCC)
Links: Bailii
Coram: Mann J
Whether VAT assessments were issued within time limit.

References: [2012] UKUT 276 (TCC)
Links: Bailii
Coram: Sales J
UTTC Adjustment for errors in VAT returns under regulation 35 of the VAT Regulations 1995 – exercise of discretion by HMRC – time limits for correcting errors in VAT returns – time limits for reclaiming overpaid VAT
Statutes: VAT Regulations 1995 35

References: [2014] UKUT 46 (TCC)
Links: Bailii
UTTC VAT – whether supplies of catering and entertainment services to members of the public are exempt as supplies closely related to the provision of education – Sixth VAT Directive, Article 13A(1)(m); Principal VAT Directive, Article 132(1)(i) – VATA 1994, Sch 9, Group 6, Item 4
This case cites:

• Appeal from – Brockenhurst College -v- Revenue & Customs FTTTx (Bailii, [2013] UKFTT 153 (TC))
  FTTTx Value Added Tax – Group 6 Schedule 9 VATA 1994 – Supply of Education -Whether catering and entertainment closely related supplies -Whether exempt supplies – Yes – Appeal Allowed. . .