VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

In Babylon Farm Limited v HMRC [2021] UKUT 0224, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had erred in law but had been correct to find the appellant's hay supplies did not constitute an economic activity for VAT purposes.

In United Grand Lodge of England v HMRC [2021] TC08250, the First Tier Tribunal (FTT) found that membership fees charged to Freemasons were not exempt from VAT.

In Richmond Hill Developments (Jersey) Limited v HMRC [2021] TC08232, the First Tier Tribunal (FTT) held that the substantial reconstruction of a listed building was not sufficient enough to meet the criteria for zero-rating and recovery of the related input tax.

HMRC have issued Revenue and Customs Brief 12 (2021): VAT treatment of gaming machines from 6 December 2005 to 31 January 2013. It sets out how customers with appeals related to the VAT treatment of gaming machines during this period can claim VAT refunds.

In Scanwell Logistics (UK) Limited v HMRC [2021] TC8207, the First Tier Tribunal (FTT) agreed that Onward Supply Relief was not available to a company acting as an import agent. They had not made a supply of goods.

HMRC have launched a new online service for VAT registered businesses to apply for a Partial Exemption Special Method (PESM). This is accompanied by an updated checklist of information that should be provided with applications.

HMRC have published Revenue & Customs Brief 11 (2021): ‘VAT liability of Coronavirus (COVID-19) testing services’, which explains the VAT treatment of COVID-19 tests.


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