HMRC have published Revenue and Customs Brief 4 (2022): ‘End-customer claim refunds of VAT wrongly charged’. This brief details how end-customer claims to HMRC for refunds of VAT which has been overpaid to a supplier are impacted following the UK’s withdrawal from the European Union (EU).
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In HSBC Electronic Data Processing (Guangdong) Ltd & Ors v HMRC [2022] UKUT 00041, the Upper Tribunal (UT) found that in terms of VAT grouping, ‘established’ and ‘fixed establishment’ should be interpreted in accordance with CJEU case law concerning the place of supply rules, although their meaning is highly fact-sensitive.
In Y4 Express Limited v HMRC [2022] UKUT 00040, the Upper Tribunal (UT) found that a company could not recover VAT on delivery charges as its suppliers were not in business.
HMRC have published Revenue and Customs Brief 3 (2022): ‘Postponed VAT accounting and businesses registered under the Flat Rate Scheme’. This details how VAT on imports should be accounted for by VAT Flat Rate Scheme (FRS) users from 1 June 2022.
In Regency Factors PLC v HMRC EWCA Civ 103, the Court of Appeal (CoA) dismissed a claim for VAT bad debt relief by a company which did have bad debts but which was unable to claim them in the prescribed way: its accounting system would not facilitate a proper claim.
HMRC have published Revenue and Customs Brief 2 (2022) ‘VAT early termination fees and compensation payments’. This details their revised policy effective from 1 April 2022 and clarifies the VAT treatment of dilapidations.
In Julie Lalou T/A Dogs Delight v HMRC [2022] TC08380, the First Tier Tribunal (FTT) found that the supply of dog grooming courses was not exempt from VAT as it was not demonstrated that it was a subject ordinarily taught in schools or universities.
- HMRC cancelled VAT registration: Late appeal refused
- No input VAT recovery as VAT was not due or paid
- Supply of rooms to beauticians: VAT exempt
- R & C Brief 15 (2021): repayment of VAT to overseas businesses not established in the EU and not registered in the UK
- Church of England spiritual retreats are standard rated
- A fact could not be remade by FTT and VAT penalty due