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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue & Customs Brief 8 (2021): 'VAT treatment of public funds received by further education institutions' which provides interim guidance following the Colchester Institute Corporation decision until the position is further tested.
In Colchester Institute Corporation v HMRC [2020] UKUT 0368, the Upper Tribunal held that funding provided to a college by government agencies constitutes an economic activity for VAT purposes.
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.
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.