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 combination of her appointment as agent, and payments made in respect of the primary supply. There was no direct link between the right to take goods at the enhanced rate, and a service she had provided, and there was no basis for treating the services as a non-monetary element in the consideration for the supply of the secondary goods, and no basis for allowing for a non-monetary element under article 11 when ascertaining the taxable amount to be attributed to the supply. The commission in goods had to be treated as a price discount.
Judges:
Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley
Citations:
Times 07-Nov-2001, Gazette 29-Nov-2001, [2001] EWCA Civ 1542, [2002] BVC 71, [2001] BTC 5608, [2001] STC 1568, [2002] RTR 16, [2001] STI 1381
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – 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 . .
Cited by:
Appealed to – 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 . .
Lists of cited by and citing cases may be incomplete.
VAT, Agency
Updated: 30 June 2022; Ref: scu.166843