VAT Cases & News

In Three Shires Trailers Limited v HMRC [2024] TC09044, the First Tier Tribunal (FTT) found that input VAT was recoverable on the purchase of two Land Rover Discovery vehicles used solely for business purposes. The subsequent conversion of the vehicles into cars, by adding rear seats, did not prevent VAT recovery, or result in an output VAT charge.

In Aesthetic-doctor.com Ltd v HMRC [2024] TC09030, the First Tier Tribunal (FTT) found that a private medical clinic offering cosmetic treatments was not providing medical care. Its supplies were not exempt from VAT.

In Simple Energy Limited v HMRC [2023] TC08995, the First Tier Tribunal (FTT) found that credits awarded to customers under a refer-a-friend scheme amounted to a non-monetary consideration for the supply of energy. Output VAT was due on the value of the credits.

HMRC have published responses to their call for evidence 'VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions'. A variety of responses were received and an extension to the relief is planned.

A number of changes to the VAT DIY housebuilders scheme came into effect on 5 December 2023. Claims can now be made online and the claim deadline is extended to six months. HMRC have just published a collection of new guidance on obtaining a VAT refund under the scheme.

In Gap Group Limited v HMRC [2023] TC08991, the First Tier Tribunal (FTT) found that the supply of diesel in respect of hired plant was, for VAT purposes, separate from the supply of plant hire. Reduced rating applied to the fuel.