In DPAS Limited v HMRC [2016] UKUT 0373 the Upper Tribunal (UT) referred questions to the European Court of Justice (CJEU) regarding the VAT exemption for services relating to payments and transfers.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Mr XYZ v HMRC [2016] TC05157 the First Tier Tribunal (FTT) rejected the taxpayer’s claim for a repayment as returns were filed more than four years after a VAT assessment.
In Max Investments Ltd v HMRC [2016] UKFTT TC05063 an application to backdate VAT registration was refused following confusion as to whether construction costs were goods or services.
In Vehicle Control Services Limited v HMRC [2016] UKUT 0316 (TCC) the Upper Tribunal (UT) has held that input VAT on overheads has to be apportioned where a business makes both taxable and outside of scope supplies.
HMRC have published a brief clarifying their position on the VAT treatment of the conversion of non-residential properties into dwellings where statutory planning consent is no longer required.
In Languard New Homes Ltd v HMRC [2016] TC04917 the First Tier Tribunal (FTT) allowed the sale of a converted mixed-use property to be zero rated, contrary to HMRC’s longstanding interpretation of the legislation. Stop press: HMRC is appealing this decision.
In HMRC v Frank A Smart & Son Ltd (Respondent) (Scotland) [2019] UKSC 39, the Supreme Court upheld the decisions of all earlier courts and dismissed HMRC's continued appeal: a company was entitled to a repayment of VAT paid when acquiring Single Farm Payment (SFPE) units as a fund raising exercise.