In Danske Bank A/S v. Skatteverket, case no. C-812/19 (11 March 2021), the Court of Justice of the European Union (CJEU) held that the provision of services between the bank's Danish head office and its Swedish fixed establishment was subject to VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Saint-Gobain Building Distribution Limited v HMRC [2021] UKUT 75 the Upper Tribunal (UT) ruled that a historical bad debt relief claim could not be made due to lack of supporting evidence. There was no proof that relief had not already been claimed.
In The Prudential Assurance Company Limited v HMRC [2021] TC07480 the First Tier Tribunal (FTT) ruled that no VAT was due on intra-group services supplied within a group where invoices were not issued until after the supplier left the group. There was no continuous supply of services.
In Balhousie Holdings Limited v HMRC [2021] UKSC 2019/0103, the Supreme Court found that Balhousie was not liable to a VAT self-supply charge arising from the sale and leaseback of a new care home following acquisition from a developer. It had retained its entire interest throughout.
In Knightsbridge Accountants Ltd v HMRC [2021] TC8026, the First Tier Tribunal (FTT) disallowed input tax claimed on the purchase of a commercial property, there was no evidence to show that the purchaser had legal or beneficial ownership of the property.
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.
- Virgin Media’s appeal over VAT on Prompt Payment Discounts dismissed
- Place of supply rules and investment services
- Direct link between consideration and supply
- No VAT on transit goods Spain-bound
- HMRC loses Cowdenbeath Taxi case after contradictory arguments
- R & C Brief 3 (2021): VAT liability of digital publications update