Revenue & Customs Brief 17 (2020): ‘VAT liability of private sonography services’ clarifies HMRC’s position on the VAT treatment of ultrasound scanning services for pregnant women following the First Tier Tribunal's decision in Window to the Womb (Franchise) v HMRC.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
Revenue & Customs Brief 16 (2020): ‘VAT liability of payroll services’ explains HMRC’s position following the decision by the Cheshire Centre for Independent Living to concede in the Upper Tribunal.
HMRC will change the system used to store the VAT records of businesses not registered for Making Tax Digital for VAT (MVD) from March 2021.
Revenue & Customs Brief 15 (2020): 'VAT; Conclusion of review of Import VAT deducted as input tax by non-owners', explains the outcome of HMRC's review of its policy on the deduction of import VAT paid by taxable persons that are not the owners of the relevant goods. This is of interest to a non-owner who has reclaimed import VAT on goods imported into the UK and advisers or agents dealing with businesses importing goods to the UK.
Revenue & Customs Brief 14 (2020) changes to the methods used by opticians and sellers of hearing aids to account for VAT on their supplies.
In Marshalls Bathroom Studio Ltd ('Marshalls') v HMRC [2020] TC07753, the First Tier Tribunal (FTT) found that output tax was due on payments made by Marshalls' customers directly to sub-contractors because the sub-contractors were working for Marshalls.
In Concept Multi-Car Limited (CMC) v HMRC [2020] TC07824, the First Tier Tribunal (FTT) upheld a company's VAT default surcharge there was no evidence that CMC attempted to set up a new direct debit instruction.