Links: Home | swarblaw - law discussions

swarb.co.uk - law index


These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.  














VAT - From: 2001 To: 2001

This page lists 52 cases, and was prepared on 02 April 2018.

 
Han v Customs and Excise Commissioners [2001] 1 WLR 2253
2001
CA

VAT

1 Citers


 
Customs and Excise Commissioners v West Herts College [2001] STC 1245
2001
ChD
Hart J
VAT
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."
1 Citers


 
Halifax plc v Commissioners of Customs and Excise [2001] VATTR 71
2001
VDT

VAT

1 Citers


 
Zielinski Baker and Partners Ltd v Commissioners of Customs and Excise [2001] STC 585
2001

Etherton J
VAT, Construction
"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."
Value Added Tax Act 1994 Sch 8 Grp 6 - Planning (Listed Buildings and Conservation Areas) Act 1990 1(5)
1 Citers


 
Trinity Mirror plc (formerly Mirror Group Newspapers Ltd) v Commissioners of Customs and Excise Gazette, 05 April 2001; Times, 06 March 2001; [2001] EWCA Civ 1219; [2001] EWCA Civ 65
25 Jan 2001
CA

European, VAT, Company
The issue by a company of shares is a supply of services for the purposes of VAT. The issue of shares was 'something done' by the company, as required by the Directive. The consideration received for such shares was part of the company's turnover, and therefore a VATable supply.
Sixth VAT Directive (77/388/EEC) - Value Added Tax Act 1994
[ Bailii ] - [ Bailii ]
 
Card Protection Plan Ltd v Commissioners of Customs and Excise Times, 06 February 2001; Gazette, 01 March 2001; [2001] UKHL 4; [2001] 2 ALL ER 143; [2001] 2 WLR 329; [2002] 1 AC 202
6 Feb 2001
HL
Lord Slynn of Hadley Lord Jauncey of Tullichettle Lord Nolan Lord Steyn Lord Hoffmann
VAT, Banking, Insurance
The appellants sold a system protecting credit card holders against the consequences of loss or theft. They claimed that it was insurance and exempt from VAT. The commissioners said it was a service and vatable. The card provided a range of services for those who had lost a card, and laid off the costs against their own re-insurance. The European Court had defined insurance as the payment of a premium, to provide the insured, in the event of materialisation of the risk covered, with the service agreed when the contract was concluded. The commissioners held that two services were included, one of insurance, and one of the registration of an individual's card and other details. Held: The dominant purpose of the contract was for insurance. Others were ancillary or minor. (Slynn) "the court’s task is to have regard to the ‘essential features of the transaction’ to see whether it is ‘several distinct principal services’ or a single service and that what from an economic point of view is in reality a single service should not be ‘artificially split’. It seems that an overall view should be taken and over-zealous dissecting and analysis of particular clauses should be avoided." The court should asking itself "what is the essential feature of the scheme or its dominant purpose – perhaps why objectively people are likely to want to join it".
Sixth Council Directive (77/388/EEC) (OJ 1977 L145/1) - Value Added Tax Act 1983 17(1)
1 Cites

1 Citers

[ House of Lords ] - [ Bailii ]
 
Accounting Alliance Ltd v The Commissioners of Customs And Excise LON/01/688-ACC NIC
14 Feb 2001
VDT
Angus Nicol (Chairman), Miss A West Fca
VAT
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
Value Added Tax Act 1994 59
[ vdt ]
 
Regina v Customs and Excise ex parte Greater Manchester Police [2001] EWCA Civ 213; [2001] BVC 186; [2001] BTC 5111; [2001] STC 406; [2001] STI 243
20 Feb 2001
CA
Aldous, Robert Walker, Hale LJJ
VAT, Police

[ Bailii ]
 
Abbey National Plc v Commissioners of Customs and Excise Times, 13 March 2001; [2001] STC 297; C-408/98; [2001] 1 WLR 769; [2001] EUECJ C-408/98
22 Feb 2001
ECJ

VAT, European
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 part of the taxable person's economic activity. There had to be a direct link between the VAT costs on the acquisition of the items later sold. The sale of the business was not a sale utilising the assets purchased.
Value Added Tax (Special Provisions) Order 1995 (1995 No 1268) - Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes
1 Citers

[ Bailii ]
 
Bennett v Commissioners of Customs and Excise (No 2) Gazette, 29 March 2001; Times, 27 February 2001
27 Feb 2001
ChD

Human Rights, VAT
There was nothing to prevent the Commissioners withdrawing one assessment and replacing it with another even after an adjudication on the first by a tribunal, but they could not do this in such a way as to attempt to relitigate the issues determined.
Value Added Tax Act 1994 73 - Human Rights Act 1998

 
Bakcsi v Finanzamt Furstenfeldbruck Times, 22 March 2001; C-415/98; [2001] EUECJ C-415/98
8 Mar 2001
ECJ

VAT, European
A capital item had been acquired partly for business and privately for private purposes. It had been bought from a private non-taxable individual, but later came to be used exclusively within the business, before being sold. On this sale, this was now a business asset, and was the transaction was chargeable to VAT. The fact of charging repair bills to VAT was not conclusive to determine whether it was a business asset since the rules were different for repairs and assets.
Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes
[ Bailii ]
 
Kuwait Petroleum (Gb) Ltd v Customs and Excise [2001] EWCA Civ 337
9 Mar 2001
CA
Walker LJ, Lightman J
VAT

1 Cites

[ Bailii ]
 
Regina v Commissioners of Customs and Excise Ex Greater Manchester Police Times, 13 March 2001
13 Mar 2001
CA

VAT, Police, Judicial Review
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.
Value Added Tax (Input Tax) Order 1992 (1992 No 3222)

 
Proceedings Brought by Forsakringsaktiebolaget Skandia (Publ) Times, 20 March 2001; C-240/99
20 Mar 2001
CA

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

 
Queen on the Application of Greenwich Property Ltd v Commissioners of Customs and Excise [2001] EWHC Admin 230; [2001] NPC 67; [2001] STC 618; [2001] STI 631; [2001] BTC 5158
28 Mar 2001
Admn
Collins J
VAT
Appeal against refusal of extra statutory concession
[ Bailii ]
 
Eastbourne Town Radio Cars Association v Commissioners of Customs and Excise Times, 10 April 2001; Gazette, 01 June 2001; [2001] UKHL 19; [2001] 1 WLR 794; [2001] BTC 5196; [2001] STC 606; [2001] STI 671; [2001] 2 All ER 597
4 Apr 2001
HL
Lord Slynn of Hadley Lord Hoffmann Lord Cooke of Thorndon Lord Hobhouse of Woodborough Lord Scott of Foscote
VAT
The unincorporated association employed staff to provide services to its members. The cost was paid from subscriptions. Held: The provision of these services was chargeable to VAT, and the subscriptions were accordingly liable to VAT. Provisions within the constitution that such services were supplied by the association as agent for the members, were insufficient to avoid the charge to VAT.
Value Added Tax Act 1994 4(1) 94(2)(a)
[ Bailii ] - [ House of Lords ]
 
Expert Witness Institute v Commissioners of Customs and Excise Times, 12 April 2001
12 Apr 2001
ChD

VAT, European
The 1990 Regulation, SI 1990 No 2854, should be construed in the light of the European Directive. The Institute was exempt from Value Added Tax. Its aims of promoting and supporting the proper administration of justice, and the early resolution of disputes, were sufficiently in the public interest, and so closely connected to the administration of justice to bring it within the section as amended by the regulation. The Directive did not require that the body should be altruistic, and it was not relevant that the decision might lead to other bodies also becoming exempt.
Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes - Value Added Tax Act 1994 Sch 9 Group 9 para (e) - Value Added Tax (Education) (No 2) Order 1994 (1994 No 2969)
1 Cites

1 Citers


 
Primback Ltd v Commissioners of Customs and Excise Times, 08 June 2001; C-34/99; [2001] STC ECJ 803; [2001] EUECJ C-34/99; [2001] STC 803
15 May 2001
ECJ
Advocate General Alber
VAT, European
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 only on the amount it received. It was held to be liable on the amount paid by the consumer. The taxable amount was the consideration, and the consideration was the amount paid by the customer. The deduction was by way of set off under a different, parallel contract. It was necessary to achieve parity between different kinds of transactions as seen by the purchaser.
Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes
1 Cites

1 Citers

[ Bailii ]
 
Customs and Excise Commissioners v A and D Goddard (A Firm) Gazette, 17 May 2001
17 May 2001
ChD

VAT, Taxes Management
The taxpayer had re-claimed input VAT on mobile phones, but no output tax was due because they were to be sold outside the UK. The commissioners alleged fraud and refused the refund. On appeal the commissioners at first withdrew the allegation of fraud, and sought to add other grounds. They were allowed a time within which to file new pleadings. In the absence of such filing, the appeal was allowed, despite a request to re-instate the allegations of fraud. The Commissioners in turn appealed. They filed. Arguments they sought to enter had not been raised earlier. The Commissioners had still disclosed no arguable or sustainable case, and it would be wrong for an appeal court to substitute its own discretion for that of the tribunal, merely in order to preserve a substantial sum for the public revenue..

 
Hewlett Packard BV v Directeur General des Douanes et Droits Indirects [2001] EUECJ C-119/99; C-119/99; [2001] ECR I-3981
17 May 2001
ECJ
Advocate General Mischo
European, VAT
Europa Common Customs Tariff - Combined nomenclature - Classification of a multi-function machine combining the functions of printer, photocopier, facsimile machine and computer scanner - Principal function - Validity of Regulation (EC) No 2184/97.
Classification regulations are adopted "when the classification in the CN of a particular product is such as to give rise to difficulty or to be a matter for dispute." and "It should be borne in mind that a classification regulation is adopted … on the advice of the Customs Code Committee when the classification of a particular product is such as to give rise to difficulty or to be a matter for dispute. . . . The classification regulation constitutes the application of a general rule to a particular case, and thus contains guidance on the interpretation of the rule which can be applied by the authority responsible for the classification of an identical or similar product."
1 Citers

[ Bailii ]
 
Commissioners of Customs and Excise v Wiggett Construction Ltd Times, 07 June 2001; CH/2001/APP/110
18 May 2001
ChD
Lightman J
VAT
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


 
 Commissioners of Customs and Excise v Liverpool Institute for Performing Arts; HL 23-May-2001 - Times, 01 June 2001; Gazette, 21 June 2001; [2001] UKHL 28; [2001] 1 WLR 1187; [2001] STC 891; [2001] STI 848; [2001] BTC 5258; [2001] BVC 333; [2001] 3 CMLR 5
 
F and I Services Ltd v Commissioners of Customs and Excise [2001] EWCA Civ 762
23 May 2001
CA
Lord Justice Robert Walker, Lord Justice Sedley And Mr Justice Lightman
VAT, Administrative, Estoppel
VAT implications of tripartite voucher schemes
[ Bailii ]
 
Freemans Plc v Commissioners of Customs and Excise Times, 18 June 2001; Case C-86/99
29 May 2001
ECJ

VAT, European
Agents of a mail order company were allowed to claim sums in credit for their own sales, against their own purchases. The credit was in effect applied through a separate account with the company. How was the VAT 'taxable amount' to be calculated? Here the deduction was not applied after the purchase, and were not therefore discounts. Many discounts were not in fact applied for. The VAT was to be calculated on the full purchase price less discounts applied at the time when the discount was withdrawn from the account.


 
 Commissioners of Customs and Excise v Sinclair Collis Limited; HL 7-Jun-2001 - [2001] UKHL 30; [2001] STC 989; [2001] All ER(D) 29
 
Han and Yau t/a Murdishaw Supper Bar, and Others v Commissioners of Customs and Excise Times, 03 August 2001; Gazette, 23 August 2001; [2001] EWCA Civ 1040; [2001] 1 WLR 2253
3 Jul 2001
CA
Potter LJ, Mance LJ, Nourse Sir
VAT, Human Rights
The applicant claimed that proceedings under which he had been accused of fraud in dishonestly evading VAT liability were in reality criminal proceedings and that the minimum standards of a fair trial applied. Held: The characterisation under the rules of such proceedings as civil was a starting point only. The fact that no sanction of imprisonment could apply was relevant but not determinative. In fact the allegation required proof of dishonesty, the potential penalties were substantial, and the purpose was punitive and deterrent. Rules relaxing the admissibility of evidence were convenient for the effective collection of taxes, but that was not a consideration when the proceedings were in their nature criminal.
European Convention on Human Rights Art 6.1 - Value Added Tax Act 1994 60(1) - Finance Act 1994 8(1) - VAT Tribunal Rules 1986
1 Citers

[ Bailii ]
 
Royal Midland Counties Home for Disabled People v Commissioners of Customs and Excise Times, 10 July 2001; Gazette, 05 July 2001
5 Jul 2001
ChD

VAT
Whether an item was zero-rated for VAT purposes because it was to be used as or as an accessory for medical equipment, was could determined by the intention of the user of the product, and was not settled only be the expectation of the manufacturer. The wording 'the supply of … accessories for use.. With' suggested that it was the intention of the user which was to be investigated. The fact that the goods might generally be used by others in a non-zero-rated context was not effective. Equally the fact that the equipment might be used by this tax payer for other non-zero rated purposes was not fatal to the claim. There was no element of the word accessory that suggested that it must be a non-essential part of the equipment.
Value Added Tax Act 1994 Sch 8 Group 15 Note 3

 
Halifax Plc Country Wide Properrty Investments Ltd and Another v Revenue and Customs [2001] UKVAT V17124
5 Jul 2001
VDT

VAT

[ Bailii ]
 
Europhone International Ltd v Frontel Communications Ltd Times, 11 September 2001; Gazette, 20 September 2001
25 Jul 2001
ChD
Mr Justice Ferris
Contract, VAT
Although the VAT regime required all commercial enterprises to issue VAT invoices in a timely way, that is not sufficient, of itself, to create an implied term into contracts between businesses, that invoices should be issued in a way which would comply with that obligation. A declaration could not be granted, if all other associated claims had failed.
VAT Regulations 1995 (1995 No 2518) 13(1)
1 Cites


 
West Devon Borough Council v Customs and Excise [2001] EWHC 2202 (Ch)
31 Jul 2001
ChD
Patten J
VAT

[ Bailii ]
 
West Devon Borough Council v Commissioners of Customs and Excise Gazette, 04 October 2001
31 Jul 2001
ChD
Patten J
VAT, Construction, Local Government
The local authority had reclaimed input tax against invoices it received from builders. They were disallowed because the building constructed was an exempt supply. Although the section allowed the authority to set off VAT against invoices for supplies not made for any business of the taxpayer. The arrangements suggested that they had acted on terms applicable to traders generally rather than any special situation applicable to local authorities, which was the purpose of the section as it derived from the Directive.
Value Added Tax Act 1994 33

 
Stichtung 'Goed Wonen' and others v Staatssecretaris van Financien C-326/99; [2001] ECR I-6831; [2001] EUECJ C-326/99
4 Oct 2001
ECJ

European, VAT, Landlord and Tenant
A letting for the purpose of the VAT directive was essentially 'the conferring by a landlord on a tenant for an agreed period and in return for payment of the right to occupy property as if that person were the owner and to exclude any other person from the property as if that person were the owner and to exclude any other person from enjoyment of such a right'
1 Citers

[ Bailii ]
 
Mirror Group plc v Commissioners of Customs and Excise, Cantor Fitzgerald International v Same Times, 07 November 2001; C-409/98; C-108/99; [2002] QB 546; [2001] STC 1453; [2001] EUECJ C-108/99; [2001] EUECJ C-409/98
9 Oct 2001
ECJ
F. Macken, President of Chamber and Judges N. Colneric, C. Gulmann, J.-P. Puissochet and R. Schintgen Advocate-General A. Tizzano
VAT, Landlord and Tenant
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 property." Nor did a person taking an assignment of a lease of the property for consideration paid by the lessee to him have an interest in immovable property at the time of the agreement, and his case did not fall within article either. In each case the agreement was a supply of services either to the Landlord or to the Assignor. "The principle of the neutrality of VAT does not mean that a taxable person with a choice between two transactions may choose one of them and avail himself of the effects of the other". And "The court observes in that connection [the VAT system's objective of ensuring legal certainty] that, to facilitate the application of VAT, it is necessary to have regard, save in exceptional cases, to the objective character of the transaction in question".
Community Sixth VAT Directive 13(B)(b)
1 Cites

1 Citers

[ Bailii ] - [ Bailii ]
 
Commissioners of Customs and Excise v Royal and Sun Alliance Insurance Group Plc [2001] EWCA Civ1476
9 Oct 2001
CA
Lord Justice Aldous Lord Justice SedleyVAT, Landlord and Tenant
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.
Value Added Tax Act 1994 Sch 4 Para 4 s5(1) & (2) - VAT Regulations 1995/2518 109
1 Cites

1 Citers


 
Commissioners of Customs and Excise v Cantor Fitzgerald International C-108/99
9 Oct 2001
ECJ

European, VAT
Europa Sixth VAT Directive - Exemption for the leasing or letting of immovable property - Meaning - Supply of services - Third party taking over a lease for consideration.

 
University of Sussex v Commissioners of Customs and Excise Gazette, 01 November 2001
10 Oct 2001
ChD
Neuberger J
VAT, Limitation
The taxpayer had made a considered decision not to deduct certain input VAT claims against its payments made over a long period of time up to 1996. They later concluded that they should have made the deductions, and claimed them. The Commissioners asserted that the claims were now statute barred. Held: If the claim had been with section 80 and the regulations, it would now be time barred, but the non-exercise of a right to make a deduction, did not create a payment to the Commissioners of an amount which was not due to them. The claim was within the regulation, but not the section, and was not time barred.
Value Added Tax Regulations 1995 (1995/2518) reg 29 - Value Added Tax Act 1994 80 80(4)

 
Commissioners of Customs and Excise v Barclays Bank Plc Gazette, 15 November 2001; [2001] EWCA Civ 1513
17 Oct 2001
CA
The Vice-Chancellor, Lord Justice Buxton, And Lady Justice Arden
Banking, VAT
The respondent controlled a VAT group of companies. T was transferred to a charitable trust, and the commissioners were informed that it was no longer a member of the group. The commissioners contended that it remained a member up to the end of the accounting period. Held: The provisions of the Act relating to the termination of group membership, did not provide that it would be coterminous with the cesser of eligibility, and such a provision could not be implied..
Value Added Tax Act 1994 43(5)(b)
[ Bailii ]
 
Customs and Excise v JDL Ltd [2001] EWHC 2200 (Ch); [2002] STC 1
25 Oct 2001
ChD
Larence Collins J
VAT

[ Bailii ]
 
Commission v Italy C-78/00 C-78/00; [2001] EUECJ C-78/00; [2003] BVC 311; [2003] BTC 5255; ECLI:EU:C:2001:579; [2001] ECR I-8195
25 Oct 2001
ECJ

VAT
ECJ Failure by a Member State to fulfil its obligations - Articles 17 and 18 of the Sixth VAT Directive - Issue of Government bonds to refund excess VAT - Category of taxable persons whose tax position is in credit
[ Bailii ]
 
Commissioners of Customs and Excise v Bugeja Times, 15 November 2001; Gazette, 29 November 2001
26 Oct 2001
CA
Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley
VAT
A video shop sold videos for £20.00. On a second sale, he would take the previously sold video back, and charge only £10.00 on that second sale. The commissioners sought VAT on the basis that the price on each transaction was £20.00. The true transaction was that the consideration for the supply of the replacement video was part money, £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.

 
Lex Services plc v Commissioners of Customs and Excise; Customs and Excise Commissioners v Littlewoods Organisation Plc Times, 07 November 2001; Gazette, 29 November 2001; [2001] STC 1568
26 Oct 2001
CA
Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley
VAT
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.
Sixth Directive (77/388/EEC)
1 Cites

1 Citers


 
Commissioners of Customs and Excise v Littlewoods Organisation plc Times, 07 November 2001; Gazette, 29 November 2001; [2001] EWCA Civ 1542
26 Oct 2001
CA
Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley
VAT, Agency
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.
1 Cites

1 Citers

[ Bailii ]
 
Commissioners of Customs and Excise v Eastwood Care Homes (Ilkeston) Ltd and Others [2001] EWHC Ch 456
8 Nov 2001
ChD
Justice Lloyd
VAT, European
The Commissioners appealed an order reinstating the registration of the respondents for VAT. The respondents made largely exempt supplies. They were members of a group of companies, each trading similarly. They had sought an alteration from group registration to individual registrations. Such registrations were voluntary because their vatable turnover would be below the limits. The Directive recognised the difficulties created by smaller companies, and allowed national schemes to deal with this. Nevertheless there was no obligation to make such arrangements, and the companies could not complain of the lack of such arrangements. The cancellations of registrations stood.
Sixth VAT Directive 77/388/EEC Art 24 - Value Added Tax Act 1994 Schedule 1 paragraph 9
[ Bailii ]
 
Commission v Netherlands C-338/98; [2001] EUECJ C-338/98
8 Nov 2001
ECJ

European, VAT
ECJ Failure of a Member State to fulfil its obligations - Articles 17(2)(a) and 18(1)(a) of the Sixth VAT Directive - National legislation allowing an employer to deduct, as input tax, a certain percentage of an allowance paid to an employee for business use of a private vehicle.
[ Bailii ]
 
Midlands Co-Operative Society Ltd v Customs and Excise [2001] EWHC 701 (Ch); [2002] STC 198
15 Nov 2001
ChD
Lightman J
VAT
Appeal by an industrial and provident society, the Midlands Co-operative Society Limited against a decision dismissing its appeal against the VAT assessment by the Commissioners concerning the VAT position of another industrial and provident society which had transferred its engagements to the Midlands Society. By reason of that transfer of engagements the VAT Tribunal directed that the appeal be brought in the name of the Midlands Society. Held: The appeal failed.
[ Bailii ]
 
Netherlands v Council Times, 10 December 2001; C-110/97; [1997] EUECJ C-110/97R
22 Nov 2001
ECJ

European, VAT
An employer who was a taxable person for the purposes of VAT could deduct part of an allowance paid to an employee for business use of a private car. By the wording of the provisions of Directive, employees were not, as required by article 17(2)(a) which laid down the right of deduction, taxable persons supplying goods or services the VAT on which was deductible in the hands of the recipient taxable person, nor did they supply their vehicles or the fuel to the employer
Sixth Council Directive 77/388/EEC on the harmonisation of the laws of the member states relating to turnover taxes: common system of value-added tax: uniform basis of assessment (OJ 1977 L145, p1)
[ Bailii ]
 
Customs and Excise v Yarburgh Children's Trust [2001] EWHC 2201 (Ch); [2002] STC 207
29 Nov 2001
ChD
Patten J
VAT, Construction

[ Bailii ]
 
Ashfield District Council v Commissioners of Customs and Excise [2001] EWHC Ch 462
30 Nov 2001
ChD
The Vice-Chancellor
VAT, Local Government
The council were liable to pay grants for building works. They wished to set the VAT element as an input tax. The Commissioners refused. Did the builders supply their services to the house owners, or to the council who paid the bill. The Act allowed the council to pay the sum direct to the builder. Grants might be repayable except where they were paid direct. It is not uncommon for one payment to satisfy two obligations. That is what happened here. The council was not entitled to reclaim the VAT.
Housing Grants Construction and Regeneration Act 1996 - Value Added Tax Act 1994 33
1 Cites

[ Bailii ]
 
Stewart and Another (T/A Gt Shooting) v Customs and Excise [2001] EWCA Civ 1988; [2002] STC 255; [2002] BTC 5238; [2001] STI 1774; [2002] BVC 359
12 Dec 2001
CA

VAT

[ Bailii ]
 
Expert Witness Institute v Commissioners of Customs and Excise Times, 21 December 2001; Gazette, 14 February 2002; [2001] EWCA Civ 1882
12 Dec 2001
CA
Lord Justice Chadwick, Lord Justice Longmore and Mr Justice Harrison
VAT
A not for profit institute whose stated aims were "supporting the proper administration of justice and the early resolution of disputes" came within the terms of the Directive and was exempt from VAT. Article 13A(1)(l) provided for exemption for the supply of services by such organisations having "aims of a civic nature". That phrase had to be strictly construed, but the claimant's primary object was of a civic nature, giving to the word "civic" the meaning "pertaining, or proper to citizens".
Sixth Council Directive 77/388/EEC (OJ 1977 L145/1 article 13A(1)(l)
1 Cites

1 Citers

[ Bailii ]
 
CSC Financial Services v Commissioners of Customs and Excise C-235/00; [2001] EUECJ C-235/00
13 Dec 2001
ECJ

European, VAT
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 liable to create, alter or extinguish parties' rights and obligations in respect of securities; it does not mean the supply of a mere physical, technical or administrative service which does not alter the legal or financial situation. Negotiation in securities does not cover services, performed by a subcontractor to a party to a contract relating to a financial product, limited to providing information about the financial product and, as the case may be, receiving and processing applications for subscription to the relevant securities, without issuing them. It does, on the other hand, cover the separate service rendered to a party to such a contract by an intermediary consisting, amongst other things, in pointing out suitable opportunities for the conclusion of such a contract, making contact with another party or negotiating, in the name of and on behalf of a client, the detail of the payments to be made by either side.
1 Citers

[ Bailii ]
 
University of Leicester Students Union v Commissioners of Customs and Excise Times, 25 January 2002; Gazette, 06 March 2002; [2001] EWCA Civ 1972
21 Dec 2001
CA
Lord Justice Peter Gibson, Lady Justice Arden, And, Mr Justice Morland
VAT, Education
The student Union supplied soft drinks to students. They claimed this was closely associated with education and that activity was therefore exempt from VAT. The Union appealed a decision against them. Held: The University charter did not provide for the Union to be part of its purpose. Though the Union was set up by the University, it was a separate body. The Union was registered for VAT in its own right. The directive sought to align exemptions, but the Union was not itself a body eligible for exemption. The supply of catering to students is a supply of goods or services "closely related" to the provision of education, and student unions are an important part of university life, but they are not eligible bodies within the Act.
Value Added Tax Act 1994 46(2) - Council Directive 77/388/EC Article 13A
1 Cites

[ Bailii ]
 
Copyright 2014 David Swarbrick, 10 Halifax Road, Brighouse, West Yorkshire HD6 2AG.