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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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.
In Flying Spur Limited v HMRC [2022] TC08360, the First Tier Tribunal (FTT) refused permission for a late appeal against HMRC’s cancellation of a company’s VAT registration.
In Zipvit Ltd v HMRC (Case C-156/20) (13 January 2022), the CJEU found that VAT was not due or paid on Mailmedia services supplied by Royal Mail. This blocked Zipvit Ltd from recovering input VAT on the supplies.
In Errol Willy Salons Ltd v HMRC [2022] TC08370, the First Tier Tribunal (FTT) found that the supply of rooms within a salon to beauticians were exempt from VAT. Additional services provided were ancillary to the supply.
HMRC have released 'Revenue and Customs Brief 15 (2021): Repayment of VAT to overseas business not established in the EU and not registered in the UK'. Certificates required from non-UK authorities by HMRC to authorise refunds can now be provided after the normal due date in exceptional circumstances relating to COVID-19.
In Reverend Jane Taylor Trading as Mill House Retreats v HMRC [2021] TC8315/V, the First Tier Tribunal (FTT) found that the provision of spiritual retreats was not VAT exempt. Welfare services were being provided but Church of England supervision did not make them state-regulated.