Revenue and Customs Brief 13 (2020): 'VAT charity digital advertising relief', sets out HMRC's policy in different digital advertising situations. The guidance may contain some errors.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments. It confirms a change in their view of the VAT treatment of contract termination payments.
In FW Services Ltd v HMRC [2020] TC 07636, the First Tier Tribunal (FTT) concluded the ‘best judgment’ assessment made by HMRC was excessive in the absence of supporting evidence.
In RPS Health in Business Limited, RPS Consulting Services Limited T/A RPS Business Healthcare v HMRC [2020] TC 07643, the First Tier Tribunal (FTT) held that occupational health services were exempt from VAT as supplies of medical care, not standard-rated as supplies of advice to employers.
In Abdul Vahab Kharadi v HMRC [2020] TC 07686, the First Tier Tribunal (FTT) granted permission to appeal out of time for the penalty but denied the appeal in respect of VAT registration in part due to a misunderstanding of the appeals' process by the appellant's accountants.
In All Answers Limited v HMRC [2020] UKUT 0236, the Upper Tribunal (UT) confirmed that an online business which provided essays, theses and coursework on demand for students, was making a supply for VAT in its own right and not acting as an agent for the writers of the material.
In Window to the Womb (Franchise) v HMRC [2020] TC 07687, First Tier Tribunal (FTT) found that pregnancy scans were medical care and therefore exempt from VAT.