In Colchester Institute Corporation v HMRC [2018] TC06657, the First Tier-Tribunal (FTT) found that the provision of education to the extent it is funded by funding agencies is not an economic activity for VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In T Hughes v HMRC [2018] TC06609, the First-Tier Tribunal (FTT) found that a pub intending to close part of every year to remain under the VAT threshold had crossed the threshold and had no reasonable excuse for not registering.
HMRC have published draft legislation which will introduce changes proposed by the EU and ease the VAT burden for some businesses that provide e-services.
HMRC have released Revenue & Customs Brief 7: VAT – motor dealer deposit contributions, providing guidance to motor retailers, finance companies, and businesses who have purchased vehicles with a dealer deposit contribution.
In HMRC v DPAS Limited [2018] (C-5/17), the Court of Justice for the European Union (CJEU), found that administration fees charged to patients in relation to dental plans were not exempt.
In Pertemps Limited v HMRC [2018] TC06583 the FTT concluded that a salary sacrifice scheme operated by the taxpayer amounted to a supply to its employees, however it was not an economic activity and therefore outside the scope of VAT. HMRC appealed to the Upper Tribunal who dismissed HMRC's appeal using different reasoning. See HMRC v Pertemps Ltd: [2019] UKUT 0234 (TCC)
HMRC’s VAT Brewers’ Society Agreement terminated on 1 June 2018. HMRC have not published any formal guidance following the withdrawal.