VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

In HMRC v Esporta [2013] UKUT 0173, it was held that late paid gym fees are subject to VAT.

In Geoffrey Seeff t/a TPL Associates v HMRC TC02738 [2013] a Chartered Accountant was successful in a claim for retrospective authorisation to use the VAT Flat Rate scheme.

This guide applies to the end of the transition period: 31 December 2020. 

From 1 December 2012 a business that does not have a business or fixed establishment in the UK, and which trades in the UK will be required to register for VAT as soon as it makes its first taxable supply in the UK, or when it expects to make taxable supplies here within the next 30 days, whatever happens first.

What's new?

Following the end of the transition period on 31 December 2020, the UK is a third country territory in respect of EU VAT. As such, the “Gelangensbestätigung” (below) is no longer relevant.

In the case of export declarations under customs law in the ATLAS electronic export procedure, the ‘exit note’ (Ausgangsvermerk) must be kept as evidence.

Intra-EU supplies from Germany: German tax authority evidential requirements

Since 1 January 2012, the German Ministry of Finance has required German suppliers to hold a “Gelangensbestätigung”, i.e. a confirmation signed by the recipient that the goods arrived in the country of destination, in addition to a copy of the invoice relating to the intra-EU supply, as evidence of the intra-EU transaction. 

Depending on how the transport is arranged, the content of the Gelangensbestätigung differs, but it always needs to state when and where the goods were actually received by the purchaser.

The new requirement is subject to a transitional period lasting until 31 March 2012. Increasingly, German suppliers will be asking their customers in all Member States to complete the relevant form in relation to their purchases.

If you have any clients who buy goods from Germany they will have to be asked to comply with these new rules.


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Nearly all VAT registered business will be required to file their VAT returns online and pay any VAT due electronically from April 2012. 

In Astra Zeneca [2010] STC 2298 CJEU Case C-40/09, a salary sacrifice scheme whereby employees agreed to forgo salary in return for food and meal vouchers were deemed to be a supply of services made by the employer.

Some employment businesses may have incorrectly charged VAT on supplies following the withdrawal of the VAT staff hire concession according to the First Tier VAT Tribunal.

 

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