VAT Cases

Summaries of interesting VAT cases for the SME owner.

In Marlow Rowing Club [2018] TC 6803, a tribunal held that the club did not have reasonable excuse when it incorrectly issued a certificate for zero-rating a building for a charitable purpose. it had not taken adequate steps to contact HMRC over a decision that it knew was contrary to HMRC policy.

In J & B Hopkins Ltd [2018] UKUT 0382, a subcontractor was held liable for VAT on work to a contractor who did not have to charge VAT. The subcontractor could not later recover the VAT because the contractor had gone into liquidation.

In Bramall Contracts Limited & Others v HMRC [2018] TC06648, the FTT concluded that VAT had not been recovered on cars purchased for leasing and therefore the repayment claim for VAT on manufacturer bonuses were recoverable.

In Kinnerton Confectionery Limited v HMRC [2018] TC06548¸ the FTT decided that an allergen-free chocolate bar was standard rated as confectionary and was not food for VAT.

In All Answers Ltd v HMRC [2018] TC06845, the FTT held that there was no agency arrangement in an essay-writing service for students.

In Olive Garden Catering Ltd v HMRC [2018] TC06595, the FTT found that the appellant was providing separate supplies of food and services, but the services provided were standard rated catering services.

In Marcandi Ltd v HMRC [2018] C-544/16, the CJEU ruled that the bid credits sold by ‘Madbid’ to penny-auction participants are supplies of services, not part of the supply of goods.