VAT Cases & News

HMRC have published Revenue and Customs Brief 3 (2023) ‘Changes to VAT treatment of local authority leisure services’. The supply of leisure services by local authorities to members of the public may now be treated as non-business. 

HMRC have published Revenue and Customs Brief 2 (2023) ‘VAT and value shifting consultation update’. This sets out HMRC’s conclusions and actions taken following the VAT and value shifting consultation in 2021.

In Fareham College v HMRC [2023] TC08740, the First Tier Tribunal (FTT) found that supplies made to members of the public by a college’s training restaurant were exempt from VAT.

In Fulfillment Logistics UK Limited v HMRC [2023] TC08736, the First Tier Tribunal (FTT) found that the Kittel principle did apply to deny input VAT repayment but the customer also had a fixed place of business in the UK for supply purposes, meaning output VAT was due.

In Paradise Wildlife Park Limited v HMRC [2023] TC08729, the First Tier Tribunal (FTT) rejected the appellant's claim that the costs incurred in the building of its walk-through dinosaur exhibit and lion enclosure were zero-rated for VAT as the exhibit was not a building and not intended solely for use for a charitable purpose.

In News Corp UK & Ireland v HMRC [2023] UKSC7, the Supreme Court (SC) found electronic versions of newspapers were standard rated for VAT purposes prior to 1 May 2020.