Summaries of interesting VAT cases for the SME owner.
The First Tier Tribunal (FTT) found that irrespective of government funding, the supply of education and vocational training is a business activity for VAT. The supplies were provided in exchange for consideration; they fall within the scope of economic activity.
In the latest instalment of a long-running £1.1m VAT dispute, the First Tier Tribunal has found that Nakd and Organix bars were ‘confectionery’ for VAT purposes.
HMRC have published Revenue and Customs Brief 1 (2024): ‘Live web streaming of funeral services’. This brief clarifies HMRC’s position on the VAT treatment of live web streaming of funeral, burial, or cremation services.
Cakes? Confectionary? Something else? The First Tier Tribunal recently found that twin packs of sports nutrition bars containing a flapjack and cake bar or brownie were standard-rated for VAT purposes, being confectionery.
In Three Shires Trailers Limited v HMRC [2024] TC09044, the First Tier Tribunal (FTT) found that input VAT was recoverable on the purchase of two Land Rover Discovery vehicles used solely for business purposes. The subsequent conversion of the vehicles into cars, by adding rear seats, did not prevent VAT recovery, or result in an output VAT charge.
In Aesthetic-doctor.com Ltd v HMRC [2024] TC09030, the First Tier Tribunal (FTT) found that a private medical clinic offering cosmetic treatments was not providing medical care. Its supplies were not exempt from VAT.
In Simple Energy Limited v HMRC [2023] TC08995, the First Tier Tribunal (FTT) found that credits awarded to customers under a refer-a-friend scheme amounted to a non-monetary consideration for the supply of energy. Output VAT was due on the value of the credits.