In HMRC v The Prudential Assurance Company Limited [2023] UKUT 54, the Upper Tribunal allowed an appeal by HMRC against a decision that no VAT was due on services provided whilst the parties were members of a VAT group that were not invoiced or paid until after the supplier left the group.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In The Young Driver Training Limited v HMRC [2023] TC08748, the First Tier Tribunal (FTT) found that the appellant was not making supplies that included the right to admission and so was unable to take advantage of the temporary reduced VAT rate introduced during the pandemic.
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.