Summaries of interesting VAT cases for the SME owner.
In HMRC v Innovative Bites Ltd [2025] EWCA Civ 293, the Court of Appeal (CoA) allowed HMRC’s appeal and remitted the case to the First Tier Tribunal (FTT) to consider whether Mega Marshmallows are a 'sweetened prepared food which is normally eaten with the fingers'.
In HMRC v Bolt Services UK Ltd [2025] UKUT 0100, the Upper Tribunal (UT) found that mobile app ride-hailing services were within the scope of the Tour Operators Margin Scheme (TOMS).
In Sammy Garden Ltd v HMRC [2025] TC09443, the First Tier Tribunal (FTT) found that a company was liable to account for output VAT from its effective date of registration, not the date that it learned of its VAT registration which was nearly four months later.
The Chartered Institute of Taxation (CIOT) is warning that VAT phishing emails are resurging. HMRC emphasises that they do not embed web links in their communications.
In Cheema Constructions Services Ltd & Anor v HMRC [2025] TC09418, the First Tier Tribunal (FTT) found that the Kittel Principle did not apply, meaning the company was entitled to reclaim input VAT.
In Sonder Europe Ltd v HMRC [2025] UT 00014, the Upper Tribunal (UT) found that the supply of holiday apartments to travellers was not eligible for the Tour Operators’ Margin Scheme (TOMS).
In Global By Nature Ltd v HMRC [2025] TC09396, the First Tier Tribunal (FTT) found that powdered vegan food supplements were zero-rated for VAT.
