In C-156/20 Zipvit Limited v HMRC, the EU Advocate General (AG), on referral from the Supreme Court, ruled that whilst the principle of a deduction for VAT existed even when no VAT had been charged, no deduction was possible without a VAT invoice.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Colin Newell v HMRC [2021] TC08149, the First Tier Tribunal (FTT) found that the receipt of subsidy income by a biomass business did not restrict input VAT recovery.
HMRC have published Revenue & Customs Brief 10 (2021): ‘Repayment of VAT to overseas businesses not established in the EU and not VAT registered in the UK’, announcing a further deadline extension to the overseas VAT refund scheme, following continued difficulties faced by some businesses in obtaining a certificate of status.
In CMJ (Aberdeen) Ltd v HMRC [2021] TC8140 the First Tier Tribunal (FTT) dismissed an appeal against assesments to standard-rate the supply of a new build dwelling. It could not be zero-rated as it did not have valid planning consent when the construction works commenced.
In Royal Opera House Covent Garden Foundation v HMRC [2021] EWCA Civ 910, the Court of Appeal (CA) upheld the Upper Tribunal's (UT) decision that there was no direct and immediate link between Opera production costs and the sale of food and drink that would allow the input VAT on the former to be deductible.
HMRC is writing to VAT-registered businesses this month to tell them that any VAT direct debits will be cancelled if HMRC does not hold an email address for them. This is in order for HMRC to comply with UK banking regulations.
HMRC have published Revenue & Customs Brief 9 (2021): ‘VAT liability of daycare services supplied by private bodies in England and Wales’ following recent Court of Appeal cases.
- R & C Brief 8 (2021): VAT treatment of public funds received by further education institutions
- Funded education is an economic activity
- Management services were taxable supplies
- College finds partial exemption trumps input VAT recovery
- Morrison tastes £1m VAT defeat as snack bars are not cakes
- R & C Brief 7 (2021): VAT liability of charging electric vehicles
