The court examined arrangements whereby organisations which were not banks, endorsed credit cards to be issued by banks to their members.
Held: The granting of credit was exempt from VAT, and also were exempted negotiations of credit and the provision of intermediary services. It was wrong to seek to characterise the arrangement as the mere sale of the taxpayers’ client or member database, since there was also positive marketing of the service to members. The organisation provided access for its members to bankers who might provide credit, but the essential requirement was the co-branding. The services were exempt.
Judges:
The Vice-Chancellor, Lord Justice Mummery, Lord Justice Tuckey
Citations:
Times 02-Jan-2003, [2002] EWCA Civ 1814, [2003] STC 35
Links:
Statutes:
Sixth Council Directive 77/388/EEC 13(B)(d)(1), Value Added Tax Act 1994 Sch 9 grp 5 para 5
Jurisdiction:
England and Wales
Citing:
Cited – Commissioners of Customs and Excise v Civil Service Motoring Association CA 10-Dec-1997
The exemption from VAT for the making of credit arrangements extends to the surrounding activities; not just the making of arrangement. . .
Cited – CSC Financial Services v Commissioners of Customs and Excise ECJ 13-Dec-2001
Europa On a proper construction of Article 13B(d)(5) of the Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes transactions in securities means transactions . .
Cited by:
Cited – Bournemouth Symphony Orchestra v Revenue and Customs CA 9-Oct-2006
The Orchestra apealed a finding that it was not entitled to exemption from VAT as a supply by an eligible body of a cultural performance. The taxpayer’s board was voluntary, but the management was employed.
Held: The appeal failed. In order to . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 20 October 2022; Ref: scu.178436
