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