In Skin Rich Ltd v HMRC [2019] TC7310 the First Tier tribunal ruled that neither injectable Botox treatment nor nail fungus treatment came within the scope of VAT exempt medical care.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Barry John Graham v HMRC [2019] TC7313, the First Tier tribunal agreed that a sole trader had done enough to establish that three cars were not “made available for private use” and could claim input tax on their purchase.
In Faux Properties (A Partnership) v HMRC [2019] TC7051 a partnership's failure to adjust their VAT return to declare VAT received on the sale of an opted property resulted in a penalty for carelessness.
HMRC published Call for evidence: simplification of partial exemption and the Capital Goods Scheme in July 2019.
Following a consultation HMRC have published ‘Revenue and Customs Brief 6: Changes in accounting for VAT after prices are altered’ to explain new rules for adjustments to VAT after changes in the price of goods or services.
In Marks and Spencers PLC v The Commissioners for HM Revenue and Customs: [2019] UKUT 0182 (TCC), the Upper Tribunal decided that free wine, supplied in a dine for two £10 with free wine offer was a standard rated supply and the £10 should be apportioned to the supply of both wine and food.
In Anthony Leach v HMRC [2019] TC 7180, the first tier tribunal found that a trader’s excessive claims for refunds of VAT was as a result of “deliberate and concealed” behaviour. The consequence is that HMRC can claim tax for the previous 20 years rather than four, and that the highest rates of penalty apply.