Tag: VAT

Snow Factor Ltd v Revenue and Customs: FTTTx 24 Jan 2018

Vat – Reduced Rates : Other

Citations:

[2018] UKFTT 28 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal from – Snow Factor Ltd v Revenue and Customs UTTC 8-Mar-2019
Value Added Tax – Application Under Section 85B of Vata 1994 . .
See Also – Snow Factor Ltd, Snow Factor Training Ltd v Revenue and Customs (VAT – Burden of Proof On Appellant) FTTTx 31-Oct-2019
VAT – burden of proof on appellant where assessment on grounds of abuse – transfer of training business to non-profit making company (‘newco’) which claimed VAT exemption – commercial and economic reality – contracts ignored – whether abuse of . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 18 June 2022; Ref: scu.604363

Weald Leasing (Taxation): ECJ 26 Oct 2010

ECJ Opinion – Value added tax (VAT) – Sixth Council Directive 77/388/EEC – Concept of ‘abusive practice’ and ‘normal commercial operations’ – Transaction designed solely to obtain a tax advantage – Leasing and sub-leasing transactions intended to defer the payment of VAT – Redefinition of abusive practice
The taxpayer’s decision to take equipment on lease from an intermediate company rather than buy it outright was an ordinary commercial transaction. It was not abusive even though it was unusual for the taxpayer in question and was designed to obtain a tax advantage by spreading the liability to tax over a longer period. The choice between leasing and outright purchase was a choice accommodated by the scheme of the VAT legislation. The tax treatment of lease payments being a facility available under the legislation itself, resort to it could not be regarded as contrary to its purpose.

Judges:

Mazak AG

Citations:

C-103/09, [2010] EUECJ C-103/09

Links:

Bailii

Jurisdiction:

European

Citing:

Cited – Halifax plc etc v Commissioners of Customs and Excise ECJ 21-Feb-2006
ECJ Sixth VAT Directive – Article 2(1), Article 4(1) and (2), Article 5(1) and Article 6(1) – Economic activity – Supplies of goods – Supplies of services – Abusive practice – Transactions designed solely to . .
At VDT – Weald Leasing Ltd v Revenue and Customs VDT 6-Feb-2007
VDT VAT – AVOIDANCE – Abuse of rights – Appellant associate of exempt trader purchasing assets to lease to separate company to lease on to exempt trader – Associate outside VAT group – Associate credited with . .
Reference from – HM Revenue and Customs v Weald Leasing Ltd ChD 16-Jan-2008
. .

Cited by:

Opinion – HM Revenue and Customs v Weald Leasing (Taxation) ECJ 2-Dec-2010
ECJ Sixth VAT Directive – Concept of ‘abusive practice’ – Leasing transactions effected by a group of undertakings to spread the payment of non-deductible VAT . .
Cited – Revenue and Customs v Pendragon Plc and Others SC 10-Jun-2015
‘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 . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 13 June 2022; Ref: scu.425771

Wootton and Another v Customs and Excise: VDT 17 Aug 2004

VAT PENALTIES – whether the appellants partners in restaurant business – whether liable for penalty assessment – dishonest conduct for purpose of evading VAT found proved – appellants held to be responsible – assessment upheld and appeal dismissed

Citations:

[2004] UKVAT V18731

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 June 2022; Ref: scu.200595

Begum v Customs and Excise: VDT 17 Aug 2004

VAT – assessments – observations and ‘test eats’ – average suppression rate calculated using average meal bill declared sales and observed sales – to best judgment – appeal dismissed

Citations:

[2004] UKVAT V18736

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 June 2022; Ref: scu.200589

Dennison v Customs and Excise: VDT 17 Aug 2004

VAT- ZERO RATED SUPPLY – PERSON WITH DISABILITY – supply of French doors and windows- was the supply connected with the service of zero rated construction works – no because the Respondents made an error in zero rating the construction works – Appeal dismissed ( paragraphs 6.5 and 6.9 VAT Notice 701/7).

Citations:

[2004] UKVAT V18733

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 June 2022; Ref: scu.200588

Commissioners of Customs and Excise, HM Attorney General v Federation of Technological Industries And 53 others: CA 30 Jul 2004

Judges:

Lord Justice Ward Lord Justice Jacob

Citations:

[2004] EWCA Civ 1020

Links:

Bailii

Statutes:

Value Added Tax Act 1994

Jurisdiction:

England and Wales

Citing:

Cited – Federation of Technological Industries and Others, Regina (on the Application Of) v Customs and Excise and Another Admn 18-Feb-2004
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 11 June 2022; Ref: scu.199798

Commission v Italy C-381/01: ECJ 15 Jul 2004

ECJ Failure of a Member State to fulfil obligations – Directive 77/388/EEC – VAT – Article 11(A)(1)(a) – Taxable amount – Subsidy directly linked to the price – Regulation (EC) No 603/95 – Aid granted in the dried fodder secto

Citations:

[2004] EUECJ C-381/01

Links:

Bailii

Jurisdiction:

European

VAT, Agriculture

Updated: 11 June 2022; Ref: scu.199449

Saga Holiday Ltd v Customs and Excise: VDT 4 May 2004

VAT – consideration – discounts – whether prompt payment discounts reduce the taxable amount where the discount is not achieved – para 4(1) Sch 6 VAT Act – tour operators – whether package price reduced by prompt payment discounts where not achieved.

Citations:

[2004] UKVAT V18591

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 June 2022; Ref: scu.199145

Hylands v Customs and Excise: VDT 7 Apr 2004

VDT CUSTOMS DUTY – Relief – Vehicle for use by handicapped person – Motor home adapted for use by person using wheel-chair – Vehicle fitted with ramps, stowage for ramps, floor track – Whether ‘specially designed for the social advancement’ of physically handicapped person – Yes – Reg 918/83/EEC Art 72.1, 72.2
ZERO RATING – Import of vehicle for use by handicapped person who usually uses a wheel-chair – Vehicle fitted with ramps etc – Whether vehicle ‘substantially and permanently adapted for carriage of a person in a wheel-chair’ – Yes – VATA 1994 Sch 8, Gp 12, Items 2, 2A, Note 5L

Citations:

[2004] UKVAT V18560

Links:

Bailii

Jurisdiction:

England and Wales

VAT, Customs and Excise

Updated: 11 June 2022; Ref: scu.199092

Dukes Contracts v Customs and Excise: VDT 4 May 2004

DEFAULT SURCHARGE – Reasonable excuse – Cash shortage caused by mismanagement of construction contract on part of Appellant – Incapacity through illness of chief executive – Whether reasonable foresight and due diligence would have prevented the insufficiency of funds – No – Appeal allowed

Citations:

[2004] UKVAT V18587

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 11 June 2022; Ref: scu.199125

Gemeente Leusden and Another v Staatssecretaris van Financien: ECJ 29 Apr 2004

(Judgment) Turnover taxes – Common system of value added tax – Article 17 of the Sixth Directive 77/388/EEC – Deduction of input tax – Amendment of national legislation withdrawing the right to opt for taxation of lettings of immovable property – Adjustment of deductions – Application to current leases

Citations:

C-487/01, [2004] EUECJ C-487/01, [2004] ECR I-5337, [2007] STC 776, [2006] BVC 740, [2006] BTC 5670

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 10 June 2022; Ref: scu.196662

21st Century Logistic Solutions Limited (In Liquidation) v Madysen Limited: QBD 17 Feb 2004

The vendor sold computers to the defendant, intending not to account to the commissioners for the VAT. The seller went into liquidation, and the liquidator sought payment. The purchaser had been unaware of the intended fraud and resisted payment.
Held: The fraud did not make the contract unenforcable by the liquidator. The fraudulent intent was too far removed from the substance of the contract to taint it. Money received by a seller would not be held in trust for the Commissioners, and use of the money for other purposes did not conflict wit the tax payers duty later to account for an equivalent sum. The contract itself was lawful.

Judges:

Mr Justice Field

Citations:

[2004] EWHC 231 (QB), Times 27-Feb-2004, Gazette 25-Mar-2004, [2004] BVC 779, [2004] 2 Lloyds Rep 92, [2004] STC 1535, [2004] STI 497, [2004] BTC 5720

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Cited – Holman v Johnson 5-Jul-1775
ex turpi causa non oritur actio
A claim was made for the price of goods which the plaintiff sold to the defendant in Dunkirk, knowing that the defendant’s purpose was to smuggle the goods into England. The plaintiff was met with a defence of illegality.
Held: The defence . .
Cited – Tinsley v Milligan HL 28-Jun-1993
Two women parties used funds generated by a joint business venture to buy a house in which they lived together. It was vested in the sole name of the plaintiff but on the understanding that they were joint beneficial owners. The purpose of the . .
Cited – Hall v Woolston Hall Leisure Limited CA 23-May-2000
The fact that an employment contract was tainted with illegality of which the employee was aware, did not deprive the employee of the possibility of claiming rights which were due to her under a statute which created rights associated with but not . .
Cited – Skilton v Sullivan CA 18-Mar-1994
The seller of a quantity of Koi carp sent the buyer an invoice for trout. The supply of Koi carp is chargeable to VAT but the supply of trout is not. When the seller sued for the price, he was met with a plea that the contract was illegal as being a . .
Cited – Miller v Karlinski CA 1945
It was too plain for argument that a contract of employment under which the employee was paid a salary and also ‘expenses’ that included the income tax payable on the salary was against public policy and therefore unenforceable. . .
Cited – Napier v National Business Agency Ltd CA 1951
The plaintiff sought to sue for wrongful dismissal on a contract of employment under which he was paid andpound;13 salary per week and andpound;6 ‘expenses’, when his expenses could never exceed andpound;1 per week.
Held: The parties had made . .
Cited – St John Shipping Corporation v Joseph Rank Limited 1956
The defendants held a bill of lading for part of the cargo carried on the plaintiffs’ vessel from Mobile, Alabama, to Birkenhead. The vessel was over laden and the plaintiffs were guilty of an offence under the 1932 Act. The defendants relied on the . .
Cited – Pearce v Brooks 1866
The contract was for the hire of an ornamental brougham to a prostitute which was supplied with knowledge that it would be used ‘as part of her display’. She returned it in a damaged condition, and refused to make any payments under the contract as . .
Cited – Scott v Brown, Doering, McNab and Co 1892
The plaintiff sought rescission of a contract for the purchase of shares, but failed because the contract had been entered into with the sole object of rigging the market by inducing the public to believe that there was a real market for the shares . .
Cited – Alexander v Rayson CA 1936
The action was for arrears of rent. The evidence at trial was that the plaintiff granted a lease to the defendant at a rent of andpound;1200 and contracted that certain services in connection with the flat would be performed. The plaintiff sent the . .
Cited – Kearley v Thompson 1890
The plaintiff could claim a locus poenitentiae on the grounds of repentance because its confession to the fraud was the result of the frustration by others of its fraudulent purpose. Recovery under a contract performed unlawfully was barred once it . .

Cited by:

Cited – SQ v RQ and Another FD 31-Jul-2008
The home in which the family had lived was held in the name of a brother. Each party claimed that it was held in trust for them. Chancery proceedings had been consolidated into these ancillary relief applications. The home had been in the husband’s . .
Lists of cited by and citing cases may be incomplete.

Contract, VAT

Updated: 09 June 2022; Ref: scu.193579

Fengate Developments (A Partnership) v The Commissioners of Customs and Excise: ChD 6 Feb 2004

Judges:

The Hon Mr Justice Evans-Lombe

Citations:

[2004] EWHC 152 (Ch), [2004] STC 772

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appealed to – Fengate Developments (A Partnership) v The Commissioners of Customs and Excise CA 1-Dec-2004
Land was transferred by a partnership to one of the partners and his wife. The consideration stated in the transfer was andpound;125,000, but each transferee had paid a similar sum into the partnership account. The respondents said that VAT should . .

Cited by:

Appeal from – Fengate Developments (A Partnership) v The Commissioners of Customs and Excise CA 1-Dec-2004
Land was transferred by a partnership to one of the partners and his wife. The consideration stated in the transfer was andpound;125,000, but each transferee had paid a similar sum into the partnership account. The respondents said that VAT should . .
Lists of cited by and citing cases may be incomplete.

VAT, Land

Updated: 09 June 2022; Ref: scu.192661

Telewest Communications Plc v The Commissioners of Customs and Excise: ChD 19 Dec 2003

Judges:

The Hon Mr Justice Ferris

Citations:

[2003] EWHC 3176 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal from – Telewest Communications Plc Telewest (Publications) Limited v Commissioners of Customs and Excise CA 10-Feb-2005
The taxpayers sold cable services which were liable to VAT through 28 subsidiaries, and supplied by a third party as part of the same service a listings magazine. They sought exemption from VAT for that part of the consideration related to the . .
Lists of cited by and citing cases may be incomplete.

VAT, Media

Updated: 08 June 2022; Ref: scu.189918

Local Authorities Mutual Investment Trust v the Commissioners of Customs and Excise: ChD 21 Nov 2003

Judges:

Mr Justice Lawrence Collins

Citations:

[2003] EWHC 2766 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appeal from – Local Authorities Mutual Investment Trust v Customs and Excise VDT 27-Jan-2003
. .

Cited by:

Appealed to – Local Authorities Mutual Investment Trust v Customs and Excise VDT 27-Jan-2003
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 08 June 2022; Ref: scu.188102

Commissioners of Customs and Excise v Hartwell Plc: CA 12 Feb 2003

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 vouchers. At first instance, the judge held that neither voucher increased VAT liability, which was to be assessed only on the money paid by the customer plus the agreed trade-in value. The commissioners appealed.
Held: The appeal was allowed in part. Though the monetary equivalent attributable to the agreed part exchange was the value to be attributed towards the replacement, the ‘purchase-plus’ vouchers provided an over-allowance for the trade-in vehicle and, to calculate the VAT chargeable, had no monetary value and did not increase the consideration paid to the taxpayers for their supply. The MOT vouchers were not granted to a customer for a consideration to which the Act applied and the consideration on which VAT was payable was increased by the value of the vouchers.

Judges:

Ward Chadwick Arden LJJ

Citations:

[2003] EWCA Civ 130, Gazette 03-Apr-2003, Times 17-Jun-2003, [2003] STC 396

Links:

Bailii

Statutes:

Value Added Tax Act 1994 19 Grp6

Jurisdiction:

England and Wales

Citing:

Appeal from – Commissioners of Customs and Excise v Hartwell Plc QBD 2002
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 by:

Cited – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
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, . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 07 June 2022; Ref: scu.180717

Criminal Proceedings against Hoffmann (Judgment): ECJ 3 Apr 2003

The defendant concert promoter appealed against a conviction for evading VAT. He had employed a solo performer but failed to account for VAT on his fees.
Held: The intent of the directive was to allow exemption of cultural workers. An individual performer could be counted as a ‘body’ within the directive and have exemption. Appeal allowed.

Citations:

C-144/00, Times 17-Apr-2003, [2003] EUECJ C-144/00

Links:

Bailii

Statutes:

Sixth Council Directive 77/338/EEC of 17 May 1977 on the harmonisation of turnover taxes

Jurisdiction:

European

VAT, Crime

Updated: 07 June 2022; Ref: scu.180809

Sceptre Services v Revenue and Customs (Includes Annex 1): FTTTx 20 Apr 2011

FTTTx Value Added Tax – Input tax – Disallowance of input tax on basis MTIC fraud – Appellant knew or ought to have known trade connected with fraud – Whether legitimate expectation input tax would be repaid on basis due diligence said by HMRC to be adequate – No – Appeal dismissed

Citations:

[2011] UKFTT 265 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 07 June 2022; Ref: scu.443007

Overland Footwear Ltd v Commissioners of Customs and Excise: ECJ 5 Dec 2002

ECJ Reference for a preliminary ruling: VAT and Duties Tribunal, London – United Kingdom. Customs Code – Customs value of imported goods – Price of goods and buying commission – Reimbursement of duty payable on full amount

Citations:

C-379/00, [2002] EUECJ C-379/00

Links:

Bailii

European, VAT

Updated: 06 June 2022; Ref: scu.178418

Commissioners of Customs and Excise v Eastwood Care Homes (Ilkeston) Ltd and Others: ChD 8 Nov 2001

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.

Judges:

Justice Lloyd

Citations:

[2001] EWHC Ch 456

Links:

Bailii

Statutes:

Sixth VAT Directive 77/388/EEC Art 24, Value Added Tax Act 1994 Schedule 1 paragraph 9

Jurisdiction:

England and Wales

VAT

Updated: 05 June 2022; Ref: scu.167094

Lex Services Plc v Commissioners of Customs and Excise: ChD 7 Sep 2000

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 attributed a value to a car in a commercial agreement for commercial reasons, it was not open to the court to substitute its own judgment, and treat the extra value as a discount on the new car.

Judges:

Arden J

Citations:

Times 17-Oct-2000, Gazette 07-Sep-2000, [2000] STC 697

Jurisdiction:

England and Wales

Cited by:

Appeal from – Lex Services plc v Commissioners of Customs and Excise; Customs and Excise Commissioners v Littlewoods Organisation Plc CA 26-Oct-2001
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 . .
At first instance – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
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, . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 04 June 2022; Ref: scu.83055

Primback Ltd v Commissioners of Customs and Excise: ECJ 15 May 2001

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. The determining factor is ‘the existence of an agreement between the parties for reciprocal performance, the payment received by the one, being the real and effective counter-value for the goods furnished to the other’.

Judges:

Advocate General Alber

Citations:

Times 08-Jun-2001, [2001] CEC 132, [2001] STC ECJ 803, [2001] EUECJ C-34/99, [2001] STC 803, [2001] BTC 5240, [2001] BVC 315, [2001] ECR I-3833, [2001] 1 WLR 1693, [2001] All ER (EC) 714, [2001] 2 CMLR 42, [2001] STI 835

Links:

Bailii

Statutes:

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

Jurisdiction:

European

Citing:

Reference from – Primback Ltd v Commissioners of Customs and Excise CA 30-Apr-1996
A retailer giving a discount was liable for Vat only on the discounted finance price, not on the full retail price. . .
At QBD – Primback Ltd v Customs and Excise Commissioners QBD 12-Sep-1994
An undisclosed discount for interest free credit given by a retailer was not allowable, and VAT was payable on the full amount. . .

Cited by:

Referred to – Primback Ltd v Commissioners of Customs and Excise CA 30-Apr-1996
A retailer giving a discount was liable for Vat only on the discounted finance price, not on the full retail price. . .
Cited – Commissioners of Customs and Excise v DFS Furniture Company Plc ChD 16-Apr-2003
The Commissioners had been ordered to repay VAT to the taxpayer. A subsequent decision of the ECJ meant that the sum should have been repaid to the Commissioners. The taxpayer now alleged that the commissioners were out of the two year maximum time . .
Cited – DFS Furniture Company Plc v Commissioners of Customs and Excise CA 16-Mar-2004
The taxpayers said that the Commissioners’ assessment to VAT was out of time, and appealed a finding that it was not. They said that time should run from the point at which the Commissioners knew the facts upon which the assessment was based. The . .
Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Cited – Airtours Holidays Transport Ltd v Revenue and Customs SC 11-May-2016
The court was asked whether the appellant, Airtours Holidays Transport Ltd (formerly MyTravel Group plc), was entitled to recover, by way of input tax VAT charged by PricewaterhouseCoopers LLP in respect of services provided by PwC and paid for by . .
Cited – Airtours Holidays Transport Ltd v Revenue and Customs SC 11-May-2016
The court was asked whether the appellant, Airtours Holidays Transport Ltd (formerly MyTravel Group plc), was entitled to recover, by way of input tax VAT charged by PricewaterhouseCoopers LLP in respect of services provided by PwC and paid for by . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 04 June 2022; Ref: scu.162741

Emsland-Starke GmbH v Hauptzollamt Hamburg-Jonas: ECJ 14 Dec 2000

ECJ Articles 9(1), 10(1) and 20(2) to (6) of Regulation No 2730/79 laying down common detailed rules for the application of the system of export refunds on agricultural products, in the version resulting from Regulation No 568/85, must be interpreted as meaning that a Community exporter can forfeit his right to payment of a non-differentiated export refund if (a) the product in respect of which the export refund was paid, and which is sold to a purchaser established in a non-member country, is, immediately after its release for home use in that non-member country, transported back to the Community under the external Community transit procedure and is there released for home use on payment of import duties, without any infringement being established and (b) that operation constitutes an abuse on the part of that Community exporter. A finding that there is an abuse presupposes an intention on the part of the Community exporter to benefit from an advantage as a result of the application of the Community rules by artificially creating the conditions for obtaining it. Evidence of this must be placed before the national court in accordance with the rules of national law, for instance by establishing that there was collusion between that exporter and the importer of the goods into the non-member country. The fact that, before being re-imported into the Community, the product was sold by the purchaser established in the non-member country concerned to an undertaking also established in that country with which he has personal and commercial links is one of the facts which can be taken into account by the national court when ascertaining whether the conditions giving rise to an obligation to repay refunds are fulfilled.
The exporter was refused a rebate of duty to which he was entitled on the face of the relevant Commission Regulation upon the export of his goods, because he had abused the law by claiming it in respect of goods which had been exported to a third country only to be at once re-imported into the country of origin. The court held at para 59 that:
‘a finding that there has been an abuse presupposes an intention on the part of the Community exporter to benefit from an advantage as a result of the application of the Community rules by artificially creating the conditions for obtaining it.’
The essential reason why the trading scheme failed was that the choice of a circular supply route did not involve a choice between different methods of achieving the trader’s commercial purpose. It had no commercial purpose other than the avoidance of tax.

Judges:

G.C. Rodriguez Iglesias, P

Citations:

C-110/99, [2000] ECR I-11569, [2000] EUECJ C-110/99

Links:

Bailii

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Cited – Revenue and Customs v Pendragon Plc and Others SC 10-Jun-2015
‘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 . .
Lists of cited by and citing cases may be incomplete.

European, VAT, Agriculture

Updated: 04 June 2022; Ref: scu.162629

Criminal proceedings against Goodwin and Unstead: ECJ 28 May 1998

ECJ (Judgment) VAT was payable on supplies of counterfeit drugs even though the income generated by the trade was unlawful. Fiscal neutrality prevented differentiation between lawful and unlawful supplies
The defendants had sold counterfeit perfumes and had had VAT charges imposed retrospectively. It was held proper to charge VAT on sales which were illegal. Fiscal neutrality was set aside only where the special characteristic of a product required it

Citations:

Times 10-Jun-1998, Gazette 09-Sep-1998, C-3/97, [1998] EUECJ C-3/97

Links:

Bailii

Statutes:

Sixth Council Directive 77/388/EEC May 1977 2

VAT, European

Updated: 03 June 2022; Ref: scu.162023

Card Protection Plan Ltd v Commissioners of Customs and Excise: ECJ 25 Feb 1999

A company procuring insurance purchases for credit card protection was as exempt from VAT as was the insurer. A provision which restricted the ability to claim such exemption to those registered as insurers under national was invalid under European Law: ‘it is for the national court to determine . . whether the transactions . . are to be regarded for VAT purposes as comprising two independent supplies . . or whether one of those two supplies is the principal supply to which the other is ancillary, so that it receives the same tax treatment as the principal supply.’ What matters is ‘the essential features of the transaction’. ‘There is a single supply in particular in cases where one or more elements are to be regarded as constituting the principal service, whilst one or more elements are to be regarded, by contrast, as ancillary services which share the tax treatment of the principal service. A service must be regarded as ancillary to a principal service if it does not constitute for customers an aim in itself, but a means of better enjoying the principal service supplied . .’
As to what amounted to insurance, the court said: ‘the essentials of an insurance transaction are, as generally understood, that the insurer undertakes, in return for prior 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.
It is not essential that the service the insurer has undertaken to provide in the event of loss consists in the payment of a sum of money, as that service may also take the form of the provision of assistance in cash or in kind of the type listed in the annex Directive 73/239 as amended by Directive 84/641. There is no reason for the interpretation of the term ‘insurance’ to differ according to whether it appears in the Directive on insurance or in the Sixth Directive.’

Citations:

Times 18-Mar-1999, C-349/96, [1999] STC 270, [1999] 2 AC 601, [1998] EUECJ C-349/96 – O

Links:

Bailii

Statutes:

Directive 73/239

Citing:

Referred back – Card Protection Plan Ltd v Commissioners of Customs and Excise HL 6-Feb-2001
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 . .
Cited – Commissioners of Customs and Excise v Madgett and Baldwin (trading as Howden Court Hotel) ECJ 22-Oct-1998
The court considered the criteria for determining whether the provision to guests by a hotelier of travel services (and in particular transport to and from the hotel and excursions) constituted supply which was ancillary to the supply of . .
Cited – Faaborg-Gelting Linien v Finanzamt Flensburg ECJ 2-May-1996
A non-takeaway restaurant is a supply of services, and a ferry supply was made from its place of business. The supply of prepared food and drink at a restaurant resulted from a whole series of services (including the preparation and service of the . .

Cited by:

Referred back – Card Protection Plan Ltd v Commissioners of Customs and Excise HL 6-Feb-2001
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 . .
Cited – Commissioners of Customs and Excise v Century Life Plc CA 19-Dec-2000
The Directive required member states to exempt from VAT, services involving the provision of insurance, and for intermediaries. Following the Regulator’s involvement, the principal company had to arrange for the checking of existing policies, and . .
Cited – College of Estate Management v Commissioners of Customs and Excise ChD 13-Nov-2003
The college appealed a finding that the supply of course manuals to its students was part of its exempt rather than zero-rated supply.
Held: ‘Once it is decided that there is a single supply from an economic view which should not be . .
Cited – Commissioners for Customs and Excise v Southern Primary Housing Limited CA 18-Nov-2003
The land owner had elected to pay VAT on the purchase of land. It sought to recover that VAT. The Commissioners appealed an order allowing that.
Held: Ther were three transactions, the purchase, the sale, and a development contract. The input . .
Cited – College of Estate Management v Commissioners of Customs and Excise CA 11-Aug-2004
When offering courses to distance learning students, the College offered materials for the courses. As part of the course this supply would be exempt, as books, the supply would be zero-rated, but the taxpayer would be able to reclaim its VAT . .
Cited – Beynon and Partners v Customs and Excise HL 25-Nov-2004
The House asked whether the personal administration of a drug such as a vaccine by an NHS doctor to a patient is a taxable supply for the purposes of value added tax. The provision of medical care in the exercise of the medical and paramedical . .
Cited – HM Revenue and Customs v Weight Watchers (UK) Ltd ChD 21-Jan-2008
The court was asked whether the weight-watchers program which included attendance at a course and a supply of supporting materials was one single standard-rated supply or separate supplies of zero-rated printed materials and standard-rated support . .
Cited – Re Digital Satellite Warranty Cover Ltd and Others ChD 31-Jan-2011
The Financial Services Authority sought public interest orders for the winding up of three companies selling, it said, extended warranty cover plans without authorisation. The companies said that authorisation was not required, since only services . .
Cited – Digital Satellite Warranty Cover Ltd v The Financial Services Authority CA 29-Nov-2011
Parties appealed against on order for the winding up of the company. The Authority (FSA) had said that the company which supplied warranties to owners of digital receiver boxes were providing regulated insurance services, but that the companies were . .
Cited – Baxendale Ltd and Another v Revenue and Customs FTTTx 4-Jul-2013
FTTTx PROCEDURE – striking out of proceedings – whether appellants’ case had a reasonable prospect of succeeding – abuse of process – whether Court of Appeal decision in David Baxendale was per incuriam or . .
Lists of cited by and citing cases may be incomplete.

European, Scotland, VAT, Insurance

Updated: 03 June 2022; Ref: scu.161975

von Hoffmann v Finanzamt Trier: ECJ 16 Sep 1997

An arbitrator’s services are not those of a lawyer for the purposes of determining the place of supply of service for VAT purposes.
ECJ Sixth VAT Directive – Interpretation of Article 9(2)(e), third indent – Services of an arbitrator – Place where services are supplied.

Citations:

Times 10-Nov-1997, C-145/96, [1997] EUECJ C-145/96, [1997] All ER (EC) 85, [1998] 1 CMLR 99

Links:

Bailii

Cited by:

Cited – Jivraj v Hashwani (Rev 2) CA 22-Jun-2010
The court was asked whether parties to an arbitration agreement in a commercial contract can stipulate that the tribunal is to be drawn from members of a particular religious group, in this case the Ismaili community.
Held: The defendant’s . .
Cited – Jivraj v Hashwani SC 27-Jul-2011
The parties had a joint venture agreement which provided that any dispute was to be referred to an arbitrator from the Ismaili community. The claimant said that this method of appointment became void as a discriminatory provision under the 2003 . .
Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 03 June 2022; Ref: scu.161850

Finanzamt Bergisch Gladbach v Skripalle: ECJ 29 May 1997

(Judgment) The special measures for derogation which the Member States may introduce, pursuant to Article 27 of the Sixth Council Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes, in order to prevent tax evasion or avoidance must be strictly interpreted and may not derogate from the basis for charging value added tax laid down in Article 11 of the Sixth Directive except within the limits strictly necessary for achieving that aim.
Consequently, despite an authorization given by the Council to the Member State concerned pursuant to Article 27, national rules which, in the case of supplies for consideration made between associated persons, in particular as regards rental of property, take as the minimum basis of assessment the full cost of the services supplied, as defined in Article 11A(1)(c) of the Directive, although the agreed consideration, while less than the minimum basis of assessment, represents the market rate, are not covered by Article 27 of the Directive.

Citations:

C-63/96, [1997] EUECJ C-63/96

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 03 June 2022; Ref: scu.161797

Blasi v Finanzamt Munchen: ECJ 12 Feb 1998

ECJ Article 13.B(b)(1) of Sixth Directive 77/388 on the harmonisation of the laws of the Member States relating to turnover taxes may be construed as meaning that the provision of short-term accommodation for guests is taxable, as constituting the provision of accommodation in sectors with a function similar to that of the hotel sector. In that regard, Article 13.B(b)(1) does not preclude taxation in respect of letting agreements concluded for a period of less than six months, if that duration is deemed to reflect the parties’ intention. It is, however, for the national court to determine whether, in a case before it, certain factors (such as the automatic renewal of the letting agreement) suggest that the duration stated in the letting agreement does not reflect the parties’ true intention, in which case the actual total duration of the accommodation, rather than that specified in the letting agreement, would have to be taken into consideration. A distinction drawn by Member States, who enjoy a margin of discretion in this regard, between accommodation in the hotel sector and the letting of dwelling accommodation on the basis of its duration constitutes an appropriate criterion of distinction, since one of the ways in which hotel accommodation specifically differs from the letting of dwelling accommodation is the duration of the stay, and the use to this end of the criterion of the provision of short-term accommodation, being defined as less than six months, appears to be a reasonable means by which to ensure that the transactions of taxable persons whose business is similar to the essential function performed by a hotel, namely the provision of temporary accommodation on a commercial basis, are subject to tax.

Citations:

C-346/95, [1998] ECR 1-481, [1998] EUECJ C-346/95

Links:

Bailii

Cited by:

Cited – Colaingrove Limited v The Commissioners for Customs and Excise ChD 16-Apr-2003
The Directive exempted from a charge to VAT for letting of imoveable property. The taxpayer challenged the requirement to charge to VAT his business of leasing pitches for caravans.
Held: The directive allowed member states to derogate from . .
Cited – Colaingrove Ltd v the Commissioners of Customs and Excise CA 19-Feb-2004
The taxpayer licensed static caravans on seasonal pitches on its land. They claimed exemption from charging VAT on the basis that they were residential lettings exempt under European legislation.
Held: The appeal failed. The legislation . .
Cited – Belgian State v Temco Europe ECJ 18-Nov-2004
Where the substance of a transaction was merely that premises were made available under a licence for occupation, rather than for the provision of services, a licence to occupy premises could be treated as a letting for the purpose of the Sixth . .
Lists of cited by and citing cases may be incomplete.

European, VAT, Landlord and Tenant

Updated: 03 June 2022; Ref: scu.161713

Finanzamt Augsburg-Stadt v Marktgemeinde Welden: ECJ 6 Feb 1997

ECJ (Judgment) Tax provisions – Harmonization of laws – Turnover taxes – Common system of value added tax – Taxable persons – Bodies governed by public law – Activities in the exercise of public authority not taxable – Definition – Option for Member States to include activities exempted by virtue of Article 13 of the Sixth Directive, irrespective of the manner of their performance
(Council Directive 77/388, Art. 4(5), fourth subpara.)
The fourth subparagraph of Article 4(5) of the Sixth Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes must be interpreted as permitting Member States to consider that the activities listed in Article 13 of the directive are carried out by bodies governed by publi

Citations:

C-247/95, [1997] EUECJ C-247/95

Links:

Bailii

European, VAT

Updated: 03 June 2022; Ref: scu.161639

Commission v Greece C-331/94: ECJ 23 May 1996

(Judgment) The specific connection rule for transport services laid down in Article 9(2)(b) of the Sixth Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes is intended to ensure that each Member State taxes transport services as regards the parts of the journey carried out in its territory. Accordingly, a Member State fails to fulfil its obligations under that provision and Article 2 of the directive where it exempts from value added tax sea voyages in vessels flying the national flag which do not put in at a foreign port as regards the part of the journey within its territorial waters. The defaulting Member State cannot justify its failure in that respect by relying on the practical difficulties confronting it, on the fact that the taxable amounts in question would be negligible, on the absence of the definitive rules for charging VAT on passenger transport provided for in Article 28(5) of the Sixth Directive or on the exemption applying to international maritime transport and trips organized by undertakings from non-member count

Citations:

[1996] EUECJ C-331/94

Links:

Bailii

Jurisdiction:

European

VAT, Transport

Updated: 03 June 2022; Ref: scu.161481

Garage Molenheide and others v Belgische Staat: ECJ 18 Dec 1997

ECJ Scope of directive – Right to deduction of VAT – Retention of balance of VAT due – Principle of proportionality.

Citations:

C-286/94, [1997] EUECJ C-286/94, [1998] STC 126

Links:

Bailii

Statutes:

Sixth Directive 77/388/EEC

Cited by:

Cited – UK Tradecorp Ltd, Regina (on the Application of) v Commissioners for Customs and Excise Admn 10-Nov-2004
The trader had traded in zero-rated goods, leading to a net reclaim of input tax. Having submitted a claim, it sought repayment, and interest on the sums withheld.
Held: No duty fell upon the commissioners until they had accepted the claim to . .
Lists of cited by and citing cases may be incomplete.

European, VAT

Updated: 03 June 2022; Ref: scu.161450

Beaulande v Directeur des services fiscaux de Nantes: ECJ 16 Dec 1992

ECJ Judgment – Although Article 33 of the Sixth Directive prohibits the maintenance or introduction of taxes which have the essential characteristics of VAT, with a view to preventing the introduction of taxes, duties and charges which, through being levied on the movement of goods and services in a way comparable to VAT, would jeopardize the functioning of the common system of VAT, it does not preclude the maintenance or introduction of other kinds of taxes, duties or charges, and in particular stamp duties, which do not have those characteristics.
It follows that the aforesaid provision must be interpreted as meaning that it does not preclude the introduction or maintenance of a national tax such as French stamp duty charged on the acquisition of building land in the event of a breach of the undertaking to build within the time-limit set by the relevant legislation. That duty is not a general tax; it is not applied at the different stages of a production and distribution process since it is charged only when the real estate passes into the ownership of the final consumer; it is not deductible from duty of the same kind paid on subsequent conveyances and the levying of the duty does not take account of the added value but is based on the full value of the property.

Citations:

C-208/91, [1992] EUECJ C-208/91

Links:

Bailii

European, VAT

Updated: 01 June 2022; Ref: scu.160759

Commissioners of Customs and Excise v Sinclair Collis Limited: Admn 9 Jul 1998

A licence fee paid to a shopkeeper for the installation of a cigarette vending machine in the shop and to maintain and operate it was a licence to occupy land and so was an exempt supply.

Citations:

Times 29-Jul-1998, Gazette 09-Sep-1998, [1998] EWHC Admin 727, [1998] STC 841

Links:

Bailii

Cited by:

Appeal from – Commissioners of Customs and Excise v Sinclair Collis Limited CA 23-Jun-1999
The commissioners appealed against a decision that the agreements under which the respondents hired out vending displays to shops were for the occupation of land, and so were exempt from VAT.
Held: (a) the terms of the Directive are to be . .
Lists of cited by and citing cases may be incomplete.

VAT, Landlord and Tenant

Updated: 27 May 2022; Ref: scu.138848

Brabners Llp v Revenue and Customs: FTTTx 5 Sep 2017

Vat – Supply : Single or Multiple – VALUE ADDED TAX – Conveyancing – Appellant firm of solicitors obtaining online property searches from an external search agency – Agency invoiced appellant for the cost of obtaining access to documents without the addition of VAT – Appellant treated this as a disbursement and invoiced its clients for the same amount without VAT – Whether a disbursement? – No – Whether VAT should have been applied by the Appellant? – Yes – Appeal dismissed

Citations:

[2017] UKFTT 666 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 May 2022; Ref: scu.595444

Iveco Ltd v Revenue and Customs: FTTTx 6 Dec 2013

FTTTx VAT – preliminary issue – whether claim in respect of article 11C(1), Sixth Directive precluded by time limit in s 80(4) VATA or otherwise – assumed bonus payments made in period 1 January 1978 to 31 December 1989 giving rise to reductions in taxable amounts – VAT regulations 1995, reg 38 – jurisdiction of tribunal – s 83(1) VATA – whether claim otherwise barred under EU law by failure to make claim in reasonable time

Citations:

[2013] UKFTT 763 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 May 2022; Ref: scu.519628

Katell Ltd v Revenue and Customs: FTTTx 13 Dec 2013

FTTTx VAT – preliminary issue – whether claim in respect of article 11C(1), Sixth Directive precluded by time limit in s 80(4) VATA or otherwise – assumed bonus payments made in period 1 January 1978 to 31 December 1989 giving rise to reductions in taxable amounts – VAT regulations 1995, reg 38 – jurisdiction of tribunal – s 83(1) VATA – whether claim otherwise barred under EU law by failure to make claim in reasonable time

Citations:

[2013] UKFTT 751 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 26 May 2022; Ref: scu.519629

Wind Inovation 1: ECJ 9 Nov 2017

ECJ Taxation – Common System of Value Added Tax : Judgment – Reference for a preliminary ruling – Taxation – Common system of value added tax – Directive 2006/112/EC – Dissolution of a company resulting in its removal from the value added tax (VAT) register – Obligation to calculate VAT on available assets and to pay the VAT calculated to the State – Maintenance or amendment of the law existing on the date of accession to the European Union – Second paragraph of Article 176 – Effect on the right to deduct – Article 168

Citations:

C-552/16, [2017] EUECJ C-552/16

Links:

Bailii

Jurisdiction:

European

VAT

Updated: 23 May 2022; Ref: scu.599693

Rental Concepts Ltd v Revenue and Customs: VDT 28 May 2008

VDT VAT – Input tax deduction – Whether relevant supplies made to the Appellant or to a third party on whose behalf the Appellant acted – Held that the documentation and the conduct of the parties after the date of the written agreement indicated that the Appellant acted as agent for the third party to receive the relevant supplies on its behalf – Appeal dismissed

Citations:

[2008] UKVAT V20692

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 22 May 2022; Ref: scu.272944

Commission v Netherlands C-22/15: ECJ 25 Feb 2016

ECJ (Judgment) Failure to fulfill obligations – Tax on value added – Directive 2006/112 / EC – Exemptions – Article 132, paragraph 1, sub m) – Services closely associated with sport or physical education – exemption for the leasing of berths and sites for storage of boats for water sports association members through navigation or recreation activities that can not be equated with sport or physical education – exemption from income limited to members of watersports associations that do not employ staff for the provision of services – Excluded – Article 133, first paragraph d)

Citations:

ECLI:EU:C:2016:118, [2016] EUECJ C-22/15

Links:

Bailii

Statutes:

Directive 2006/112/EC 132

Jurisdiction:

European

European, VAT

Updated: 20 May 2022; Ref: scu.560478

Sa Chaussure Bally v Ministry of Finance Belgium: ECJ 20 Sep 1993

The Vatable amount is based on what a purchaser pays ignoring any commissions.

Citations:

Ind Summary 20-Sep-1993, Times 22-Jul-1993, C-18/92, C-18/92, [1993] EUECJ C-18/92

Links:

Bailii

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Lists of cited by and citing cases may be incomplete.

VAT, Consumer, European, VAT

Updated: 20 May 2022; Ref: scu.88964

Societe Generale Des Grandes Sources D’Eaux Minerales Francaises v Bundesant Fur Finanzen: ECJ 9 Sep 1998

Where original VAT invoice was lost a duplicate should be accepted for refund claim even though from other member state where there was no doubt about the transaction, and the loss was not the fault of the taxpayer, and no risk of double reclaim of VAT duty.

Citations:

Gazette 09-Sep-1998, C-361/96, Ecj/Cfi Bulletin 15/98, 7, [1998] EUECJ C-361/96

Links:

Bailii

Jurisdiction:

European

VAT, European

Updated: 20 May 2022; Ref: scu.89369

Fischer v Finanzamt Donaueschingen: ECJ 2 Jul 1998

The taxpayer ran several gaming clubs under a license authorising roulette type games. He was assessed to VAT, calculated on a probability basis.
Held: In general VAT was recoverable on unlawful supplies, including unlawful gaming arrangements, but where the national legislation exempted lawful arrangements it could not be applied to unlawful versions. Fiscal neutrality prevented unlawful gaming being treated differently. If gaming was VAT exempt, so also must be unlawful gaming.

Citations:

Times 02-Jul-1998, Gazette 09-Sep-1998, C-283/95, Ecj/Cfi Bulletin 15/98, 16, [1998] EUECJ C-283/95

Links:

Bailii

Statutes:

EC Treaty Art 177

VAT, European

Updated: 19 May 2022; Ref: scu.80572

Elias Gate Racing v Commissioners of Customs and Excise: QBD 10 Feb 1999

A reduction assessment made by the Commissioners, of the VAT due, which had made been under their powers to make such ‘according to their best judgment’, could not be challenged at the VAT Tribunal on the exercise of that best judgment.

Citations:

Times 28-Dec-1998, Gazette 10-Feb-1999

Statutes:

Value Added Tax Act 1994 73(1)

VAT

Updated: 19 May 2022; Ref: scu.80292

EC Commission v French Republic: ECJ 9 Sep 1998

It was open to a member state to disallow reclaim of VAT on a motor vehicle even though it was the very tool of the owners trade. State had right to retain regulations predating the Council Directive disallowing such allowances.

Citations:

Gazette 09-Sep-1998, C-43/96, Ecj/Cfi Bulletin 16/98, 27

Statutes:

Sixth VAT Directive Art 17(6)

VAT, European

Updated: 19 May 2022; Ref: scu.80242

D v W: ECJ 24 Oct 2000

The fact that a service was provided by a doctor did not mean of itself that it came within Art 13 of the Directive. The test was whether the service was part a provision of care by diagnosing and treating some diseases or disorder. The carrying out of investigations to establish genetic differences, which was to provide evidence in paternity proceedings in a court was not part of such a process, and so did not attract exemption from VAT.

Citations:

Times 24-Oct-2000, C-384/98

Statutes:

Sixth Council Directive 77/388/EC on the harmonisation of laws of the member states relating to turnover taxes; common system of value added tax Art 13

VAT, European

Updated: 19 May 2022; Ref: scu.79768

Commissioners of Customs and Excise v Liverpool Institute for Performing Arts: HL 23 May 2001

A ‘taxable supply’ within the Act did not include an out-of-country supply, even if, had that supply been made within the UK, it would have been taxable. Advertising services provided a German company were deemed to have been made in Germany, and was out-of-country. Other services of the applicant were exempt, and therefore the company was unable to deduct tax for payments of VAT residual inputs, for supplies purchased and used for the general purposes of the taxable person. The method chosen for calculating the apportionment excluded out-of-country supplies.

Judges:

Lord Slynn of Hadley Lord Cooke of Thorndon Lord Hope of Craighead Lord Millett Lord Scott of Foscote

Citations:

Times 01-Jun-2001, Gazette 21-Jun-2001, [2001] UKHL 28, [2001] 1 WLR 1187, [2001] STC 891, [2001] STI 848, [2001] BTC 5258, [2001] BVC 333, [2001] 3 CMLR 5

Links:

Bailii, House of Lords

Statutes:

Value Added Tax (Place of Supply of Services) Order 1992 (1992 No 3121)

VAT

Updated: 19 May 2022; Ref: scu.79390

Commissioners of Customs and Excise v DFD A/S: ECJ 24 Feb 1997

ECJ Article 26(2) of the Sixth Directive 77/388 on the harmonization of the laws of the Member States relating to turnover taxes is to be interpreted as meaning that, where a tour operator established in one Member State provides services to travellers through the intermediary of a company operating as an agent in another Member State, VAT is payable on those services in the latter State if that company, which acts as a mere auxiliary organ of the tour operator, has the human and technical resources characteristic of a fixed establishment. Although the place where a supplier’s business is established is the main fiscal point of reference, that reference would not lead to a rational result in that it takes no account of the actual place where the tours are marketed. On the other hand, the alternative approach of levying tax at the place of the fixed establishment from which those services are supplied, because it takes account of the possible diversification of travel agents’ activities in different places within the Community and avoids the distortions of competition which might arise from reliance on the place where the supplier has established his business, in that undertakings trading in a Member State might be encouraged to establish their businesses in a Member State in which the services in question were exempted, is based on the actual economic situation, which constitutes a fundamental criterion for the application of the common system of value added tax.

Citations:

Times 24-Feb-1997, C-260/95, [1997] EUECJ C-260/95

Links:

Bailii

VAT, European

Updated: 19 May 2022; Ref: scu.79380

Commission of the European Communities v French Republic (Supported by United Kingdom Intervener): ECJ 18 Jun 1998

(Judgment) It was open to member states to refuse to allow claim VAT input reclaims on articles purchased for transport which constituted the very tool of the trade of a taxpayer. Driving instructors may not reclaim VAT on their transport.

Citations:

Times 02-Jul-1998, C-43/96, [1998] EUECJ C-43/96

Links:

Bailii

Statutes:

Council Directive 77/388/EEC, EC Treaty 169

Jurisdiction:

European

VAT, European

Updated: 19 May 2022; Ref: scu.79302

Card Protection Plan Ltd v Commissioners of Customs and Excise: HL 6 Feb 2001

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’.

Judges:

Lord Slynn of Hadley Lord Jauncey of Tullichettle Lord Nolan Lord Steyn Lord Hoffmann

Citations:

Times 06-Feb-2001, Gazette 01-Mar-2001, [2001] UKHL 4, [2001] 2 ALL ER 143, [2001] 2 WLR 329, [2002] 1 AC 202

Links:

House of Lords, Bailii

Statutes:

Sixth Council Directive (77/388/EEC) (OJ 1977 L145/1), Value Added Tax Act 1983 17(1)

Jurisdiction:

England and Wales

Citing:

Referred back – Card Protection Plan Ltd v Commissioners of Customs and Excise ECJ 25-Feb-1999
A company procuring insurance purchases for credit card protection was as exempt from VAT as was the insurer. A provision which restricted the ability to claim such exemption to those registered as insurers under national was invalid under European . .

Cited by:

Referred back – Card Protection Plan Ltd v Commissioners of Customs and Excise ECJ 25-Feb-1999
A company procuring insurance purchases for credit card protection was as exempt from VAT as was the insurer. A provision which restricted the ability to claim such exemption to those registered as insurers under national was invalid under European . .
Cited – College of Estate Management v Commissioners of Customs and Excise ChD 13-Nov-2003
The college appealed a finding that the supply of course manuals to its students was part of its exempt rather than zero-rated supply.
Held: ‘Once it is decided that there is a single supply from an economic view which should not be . .
Cited – College of Estate Management v Commissioners of Customs and Excise CA 11-Aug-2004
When offering courses to distance learning students, the College offered materials for the courses. As part of the course this supply would be exempt, as books, the supply would be zero-rated, but the taxpayer would be able to reclaim its VAT . .
Lists of cited by and citing cases may be incomplete.

VAT, Banking, Insurance

Updated: 19 May 2022; Ref: scu.78887

Rapid Sequence Ltd v Revenue and Customs: FTTTx 14 Aug 2013

FTTTx VAT – exemption for medical care – whether applies to services provided by company acting as a principal in providing medical doctors on a locum basis to hospitals – no – Article 132(1)(c) Principal VAT Directive – Schedule 9 Group 7 Item 5 Value Added Tax Act 1994 – appeal dismissed

Citations:

[2013] UKFTT 432 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

VAT

Updated: 19 May 2022; Ref: scu.515225

Trafalgar Tours Ltd v Customs and Excise Commissioners: CA 1990

United Kingdom legislation is to be construed so far as possible so as to give effect to the purpose(s) of the European directives. As to the meaining of ‘consideration’ under the Sixth Directive: ‘Having regard to art 11A(1)(a) of the Sixth Directive, we are, therefore, subject to one important qualification prepared to accept that the expression ‘consideration’ in s 10(2) of the 1983 Act means everything which the supplier has received or is to receive from the purchaser, the customer or a third party for the relevant supplies. The one important qualification is this. The concept of receipt for this purpose is not to be confined to mere physical receipt; anything which is received by persons for and on behalf of the supplier must be treated for this purpose as received by the supplier himself . . . ‘

Citations:

[1990] STC 127

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Lists of cited by and citing cases may be incomplete.

European, VAT

Updated: 17 May 2022; Ref: scu.229020

Customs and Excise Commissioners v Reed Personal Services Ltd: 1995

The court consideerd the basic nature of Value Added Tax (VAT): ‘First, . . .. the concept of supply for the purposes of VAT is not identical with that of contractual obligation. Secondly, in consequence, it is perfectly possible that although the parties in any given situation may conclude their contractual arrangements in writing so as to define all their mutual rights and obligations arising in private law, their agreement may nevertheless leave open the question, what is the nature of the supplies made by A to B for the purposes of A’s assessment of VAT. In many situations, of course, the contract will on the facts conclude any VAT issue, as where there is a simple agreement for the supply of goods or services with no third parties involved. In cases of that kind there is no space between the issue of supply for VAT purposes and the nature of the private law of contractual obligation. But that is a circumstance, not a rule. There may be cases, generally (perhaps always) where three or more parties are concerned, in which the contract’s definition (however exhaustive) of the parties’ private law obligations nevertheless neither caters for nor concludes the statutory question, what supplies are made by whom to whom. Nor should this be a matter for surprise: in principle, the incidence of VAT is obviously not by definition regulated by private agreement. Whether and to what extent the tax falls to be exacted depends, as with every tax, on the application of the taxing statute to the particular facts. Within those facts, the terms of contracts entered into by the tax-payer may or may not determine the right tax result. They do not necessarily do so.’

Judges:

Laws J

Citations:

[1995] STC 588

Jurisdiction:

England and Wales

Cited by:

Cited – Revenue and Customs v Debenhams Retail Plc CA 18-Jul-2005
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 . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 17 May 2022; Ref: scu.229021

H and M Hennes Ltd v Customs and Excise: ChD 22 Apr 2005

The taxpayers prepared clothing which was designed for children in that it followed the typical shapes of children. The Commissioners disallowed the exemption from VAT on the basis of the application of their simple rule which divided clothing according to the height of the intended wearer.
Held: The approach of the Commissioners and of the VAT tribunal was not to be criticised. The Tribunal had not applied the Commissioners’ policy as if it were law, but as a measure of the ordinary meaning of the words ‘young children’.

Judges:

Rattee J

Citations:

Times 10-May-2005

Statutes:

Value Added Tax Act 1994 Sch 8

Jurisdiction:

England and Wales

Citing:

Appeal from – H and M Hennes Ltd v Customs and Excise VDT 16-Jul-2004
. .

Cited by:

Appealed to – H and M Hennes Ltd v Customs and Excise VDT 16-Jul-2004
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 17 May 2022; Ref: scu.224768

Shuttleworth and Co v Commissioners of Customs and Excise: 1994

The transfer of funds by a solicitor was part of the overall conveyancing service provided by a solicitor to his client. Therefore, a telegraphic transfer fee could not for VAT purposes, be treated as a disbursement in the solicitor’s bill to his client.

Citations:

Lon/94/986A

VAT, Legal Professions

Updated: 16 May 2022; Ref: scu.187350

Robert Gordon’s College v Customs and Excise Commisssioners: HL 27 Nov 1995

Input tax was recoverable by a school sports centre management, despite the use by the school. Self supply transactions must be looked at each individually, not as a whole series.

Citations:

Ind Summary 18-Dec-1995, Times 27-Nov-1995

Jurisdiction:

England and Wales

Citing:

Appeal from – Commissioners of Customs and Excise v Robert Gordon’s College ChD 6-Sep-1994
The self-supply rules applied despite the use by the taxpayer of an intermediate lease and a separate company to carry on certain activities. . .

Cited by:

Appealed to – Commissioners of Customs and Excise v Robert Gordon’s College ChD 6-Sep-1994
The self-supply rules applied despite the use by the taxpayer of an intermediate lease and a separate company to carry on certain activities. . .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 15 May 2022; Ref: scu.88804

Commissioners of Customs and Excise v Wiggett Construction Ltd: ChD 18 May 2001

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

Judges:

Lightman J

Citations:

Times 07-Jun-2001, CH/2001/APP/110

VAT

Updated: 15 May 2022; Ref: scu.79404

Commissioners of Customs and Excise v E Reece Ltd: ChD 11 Oct 2000

The taxpayer company had imported bicycles from Vietnam, relying upon certificates of origin which would give them exemption from VAT. After clearance, it was discovered that the certificates had been obtained by fraud. The regulations exempted only where the certificates had been wrongly obtained by accident. Though the taxpayer was not party to the fraud, he could not rely upon the exporter’s fraud to maintain the exemption certificate.

Citations:

Times 11-Oct-2000

VAT

Updated: 15 May 2022; Ref: scu.79381

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 represented in part a discount on the goods purchased, but in reality was also a consideration for the supply of the agents’ services.

Citations:

Times 04-Jul-2000

Statutes:

Sixth Council Directive 77/388/EEC

Citing:

Appealed to – Commissioners of Customs and Excise v Littlewoods Organisation plc CA 26-Oct-2001
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 . .

Cited by:

Appeal from – Commissioners of Customs and Excise v Littlewoods Organisation plc CA 26-Oct-2001
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 . .
Lists of cited by and citing cases may be incomplete.

VAT, Agency

Updated: 15 May 2022; Ref: scu.79388

Zipvit Ltd v Revenue and Customs: CA 29 Jun 2018

Citations:

[2018] EWCA Civ 1515, [2018] 1 WLR 5729, [2018] STC 1502, [2018] BVC 29, [2018] WLR(D) 404, [2018] STI 1455

Links:

Bailii, WLRD

Jurisdiction:

England and Wales

Citing:

At FTTTx – Zipvit Ltd v Revenue and Customs FTTTx 3-Jul-2014
FTTTx VAT – supply of individually negotiated postal services treated by all parties as exempt from VAT – customer seeking to reclaim input VAT on supply from HMRC – whether services standard rated under . .
At UTTC – Zipvit Ltd v Revenue and Customs UTTC 27-Jun-2016
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 . .

Cited by:

At CA – Zipvit Ltd v Revenue and Customs SC 1-Apr-2020
This case is concerned with the right of a trader (in this case, Zipvit) to deduct input VAT due or paid by it on supplies of services to it by a supplier (in this case, Royal Mail), so far as those supplies are used for the trader’s own supplies of . .
At CA – Zipvit ECJ 13-Jan-2022
Reference for a preliminary ruling – Common system of value added tax (VAT) – Directive 2006/112/EC – Article 168 – Right of deduction – Supply of postal services mistakenly exempted – VAT deemed to be included in the commercial price of the supply . .
At CA – Zipvit Ltd v Revenue and Customs (Respondent) (No 2) SC 11-May-2022
The court considered the right of a trader to deduct input VAT due or paid by it on supplies of services to it by a supplier (RM), so far as those supplies are used for the trader’s own supplies of goods or services to an ultimate consumer. Z used . .
Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 12 May 2022; Ref: scu.618932

The Commissioners of Customs And Excise v Bassimeh: CA 20 Nov 1996

The respondent had operated a restaurant through a limited company. The commissioners issued notices of assessments and penalties against the company, now in liquidation, and the defendant, on the basis that the company had consistently under-reported its takings. The commissioners appealed a decision setting aside the notices. The argument was as to whether notices had to be issued for the separate quarters. Because the revenue could calculate the penalty as equivalent to the amount under declared, no separate calculation need be made, even though, in this case, no penalty was recoverable for part of the period.

Citations:

[1996] EWCA Civ 999

Statutes:

Finance Act 1985 13(4)

Jurisdiction:

England and Wales

VAT, Taxes Management

Updated: 11 May 2022; Ref: scu.140866

Primback Ltd v Commissioners of Customs and Excise: CA 30 Apr 1996

A retailer giving a discount was liable for Vat only on the discounted finance price, not on the full retail price.

Citations:

Times 30-Apr-1996, [1996] STC 757

Jurisdiction:

England and Wales

Citing:

Appeal from – Primback Ltd v Customs and Excise Commissioners QBD 12-Sep-1994
An undisclosed discount for interest free credit given by a retailer was not allowable, and VAT was payable on the full amount. . .
Referred to – Primback Ltd v Commissioners of Customs and Excise ECJ 15-May-2001
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 . .

Cited by:

Reference from – Primback Ltd v Commissioners of Customs and Excise ECJ 15-May-2001
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 . .
Cited – Courts Plc v Customs and Excise CA 17-Nov-2004
. .
Lists of cited by and citing cases may be incomplete.

VAT

Updated: 11 May 2022; Ref: scu.85036