In Taylor Wimpey PLC v HMRC [2018] UKUT 55, the Upper Tribunal (UT) concluded that the majority of the kitchen goods included in houses sold were subject to the ‘Builder’s block’ on recoverable VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC has published updated guidance on the VAT exemption for domestic service charges which has been erroneously relied on by some landlords and property management companies.
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.
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.