In HMRC v Tower Resources PLC [2021] UKUT 0123, the Upper Tribunal (UT) rejected an appeal by HMRC that a holding company adding the fees for management services provided to subsidiaries to inter-company loans constituted taxable supplies for VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Kingston Maurward College (KMC) v HMRC [2021] TC8108, the First Tier Tribunal (FTT) found that the provision of free education/vocational training to students where funding is provided by government agencies is an economic supply of services for consideration. KMC was entitled to input tax recovery but failed under the partial exemption rules.
In WM Morrison Supermarkets Plc v HMRC [2021] TC08087, the First Tier Tribunal (FTT) found that both Morrison Organix and Nakd bars bars were confectionery and not cakes for VAT purposes. Consequently, they were standard rated and not zero-rated.
HMRC have published Revenue & Customs Brief 7 (2021): 'VAT liability of charging electric vehicles’ which explains the VAT treatment of using charging points in public places and when associated input VAT can be recovered by businesses.
In Leicester City Council v HMRC [2021] TC8060, the First Tier Tribunal (FTT) dismissed the Council's appeal that a VAT claim was an amendment to an earlier claim. The claim was considered a new claim and thus was made out of time.
Revenue & Customs Brief 6 (2021): 'VAT liability of juice cleanse programmes’ clarifies HMRC's policy on the distinction between standard rated beverages and zero-rated meal replacement juices.
HMRC have issued a new call for evidence, 'Simplifying the VAT Land Exemption' which seeks views on the VAT rules relating to land and property and how they may be simplified.