VAT Cases

Summaries of interesting VAT cases for the SME owner.

In T Hughes v HMRC [2018] TC06609, the First-Tier Tribunal (FTT) found that a pub intending to close part of every year to remain under the VAT threshold had crossed the threshold and had no reasonable excuse for not registering.

HMRC have published draft legislation which will introduce changes proposed by the EU and ease the VAT burden for some businesses that provide e-services.

In HMRC v DPAS Limited [2018] (C-5/17), the Court of Justice for the European Union (CJEU), found that administration fees charged to patients in relation to dental plans were not exempt.

In NHS Lothian Health Board v HMRC [2018] UKUT 0218, the Upper Tribunal (UT) dismissed the health board’s appeal as the VAT reclaimed had not been quantified with sufficient precision.

HMRC have released Revenue & Customs Brief 7: VAT – motor dealer deposit contributions, providing guidance to motor retailers, finance companies, and businesses who have purchased vehicles with a dealer deposit contribution.

In Pertemps Limited v HMRC [2018] TC06583, the FTT concluded that the salary sacrifice scheme operated by the taxpayer did not amount to a business so there was no supply for VAT purposes.

In Edgbaston Golf Club Limited v HMRC [2018] TC06430, the First-Tier Tribunal (FTT) dismissed the golf club’s Fleming claim. It could not be said to have been made to HMRC on time as it was sent to the wrong email address.