VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

HMRC have published a summary of responses to their 2019 consultation 'Call for evidence: simplification of partial exemption and the Capital Goods Scheme'. HMRC are changing internal processes and will engage further on this topic with stakeholders in the future.

Revenue & Customs Brief 4 (2021): 'Partially exempt VAT registered businesses affected by Coronavirus (COVID-19)' outlines an accelerated process to request temporary alterations to partial exemption methods to reflect changes in business practices due to Coronavirus. 

In Virgin Media Limited v HMRC [2020] UKFTT 30, the Court of Appeal has refused permission to appeal over how VAT was accounted for on supplies of services to customers.

In The Wellcome Trust Ltd v HMRC (Case C-459/19) (17 March 2021), the Court of Justice of the European Union (CJEU) held that services supplied to a taxable person who acquired those services exclusively for its non-business activities were nonetheless to be regarded as supplied to a taxable person 'acting as such'. Consequently, it was necessary for the recipient of those services to account for VAT under the reverse charge.

In Imprimatur Capital Holdings Ltd T vs HMRC [2021] TC08006, the First Tier Tribunal (FTT) concluded that only the services to third-party clients were made for consideration, therefore amounted to an economic activity and entitled to input tax recovery on those services.

In Jota Jota Alimentos Global SL (‘Jota’) v HMRC [2021] TC06584, the First Tier Tribunal (FTT) concluded that goods imported for subsequent despatch to Spain were not supplied in the UK.

In Cowdenbeath Taxi Services Limited v HMRC [2021] UKFTT 43 TC/2018/01656, the First Tier Tribunal (FTT) concluded VAT was not due on services between the companies and the Error Correction Notice submitted was sufficient to make a claim for the repayment of VAT.


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