VAT Cases

Summaries of interesting VAT cases for the SME owner.

In Window to the Womb (Franchise) v HMRC [2020] TC 07687, First Tier Tribunal (FTT) found that pregnancy scans were medical care and therefore exempt from VAT.

In Mainpay Limited v HMRC [2020] TC07690, First Tier Tribunal (FTT) found Mainpay was making a taxable supply of medical staff for VAT rather than exempt medical care.

In Europcar Group UK Ltd v HMRC [2020] TC7733, First Tier Tribunal (FTT) found that the supply of a car seat was separate to the supply of a car and should be charged at a reduced rate of VAT.

In Stonypath Developments Ltd v HMRC [2020] TC7735, input VAT was disallowed on the purchase from a a related company there was insufficient documentation to support the claim.

In Landlinx Estates Ltd v HMRC [2020] TC7706, the First Tier Tribunal (FTT) found that release of an option to buy land (which did not opt to tax) was exempt supply and in line with EU legislation and HMRC's long-standing guidance. HMRC failed in its attempt to advance an argument to the contrary.

In Colin and Susan Slaymark v HMRC [2020] TC7709, the First Tier Tribunal (FTT) found that input tax on a commercial property where the occupants had no obligation to pay rent should be disallowed.

In HMRC v Northumbria Healthcare NHS Foundation Trust [2020] EWCA Civ 874, the Trust was able to fully recover VAT on cars supplied to its employees under a salary sacrifice scheme, whilst also not charging VAT on the leases. It was deemed not to be carrying out an economic exercise.