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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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.
In Virgin Media Limited v HMRC [2020] UKFTT 30, the Court of Appeal has refused permission to appeal over how VAT was accounted for on supplies of services to customers.
In The Wellcome Trust Ltd v HMRC (Case C-459/19) (17 March 2021), the Court of Justice of the European Union (CJEU) held that services supplied to a taxable person who acquired those services exclusively for its non-business activities were nonetheless to be regarded as supplied to a taxable person 'acting as such'. Consequently, it was necessary for the recipient of those services to account for VAT under the reverse charge.
In Imprimatur Capital Holdings Ltd T vs HMRC [2021] TC08006, the First Tier Tribunal (FTT) concluded that only the services to third-party clients were made for consideration, therefore amounted to an economic activity and entitled to input tax recovery on those services.
In Jota Jota Alimentos Global SL (‘Jota’) v HMRC [2021] TC06584, the First Tier Tribunal (FTT) concluded that goods imported for subsequent despatch to Spain were not supplied in the UK.