VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

HMRC will change the system used to store the VAT records of businesses not registered for Making Tax Digital for VAT (MVD) from March 2021.

Revenue & Customs Brief 15 (2020): 'VAT; Conclusion of review of Import VAT deducted as input tax by non-owners', explains the outcome of HMRC's review of its policy on the deduction of import VAT paid by taxable persons that are not the owners of the relevant goods. This is of interest to a non-owner who has reclaimed import VAT on goods imported into the UK and advisers or agents dealing with businesses importing goods to the UK.

In Marshalls Bathroom Studio Ltd ('Marshalls') v HMRC [2020] TC07753, the First Tier Tribunal (FTT) found that output tax was due on payments made by Marshalls' customers directly to sub-contractors because the sub-contractors were working for Marshalls.  

In Concept Multi-Car Limited (CMC) v HMRC [2020] TC07824, the First Tier Tribunal (FTT) upheld a company's VAT default surcharge there was no evidence that CMC attempted to set up a new direct debit instruction.

In Greenspace (UK) Limited v HMRC [2020] TC07828, the First Tier Tribunal (FTT) found that supply and installation of conservatory roof insulation in the form of insulated roof panels is a standard-rated supply for VAT.

In The Ice Rink Company Ltd Planet Ice (Milton Keynes) Ltd v HMRC [2020] TC07829, the First Tier Tribunal (FTT) held that the hire of children's ice skates is a separate supply from admission to an ice rink.

HMRC have written letters to VAT-registered businesses in Great Britain trading with the EU and/or the rest of the world, highlighting actions they need to take to continue trading with the EU from 1 January 2021.