In Global Foods Limited v HMRC [2017] UKFTT TC06020, the First-Tier Tribunal (FTT) concluded HMRC made reasonable enquiries for the purposes of the repayment supplement, despite that it later proved that those enquiries were based on incorrect law.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published a new consultation, ‘Alternative method of VAT collection – split payment’, which looks at who is best placed in the online marketplace supply chain to account for VAT to HMRC, in order to combat VAT fraud.
HMRC have issued 'VAT registration threshold: call for evidence' to explore whether the design of the VAT threshold should be changed.
In Cavendish Green Limited v HMRC [2018] UKUT 0066, it was found that the sale of land on which a new house was to be built and on which a large boundary wall had been built did not have sufficient planning to enable zero-rating.
In Richard Akester v HMRC [2017] UKUK 0404, the Upper Tribunal (UT) set aside the First-Tier Tribunal’s (FTT) dismissal of a DIY VAT refund claim. The FTT can only consider whether construction works are lawful during the period of construction. Breaches of planning conditions after construction, should be ignored.
In Nestle UK Limited v HMRC [2018] UKUT 0029, the Upper Tribunal (UT) agreed that although chocolate Nesquik was zero-rated, banana and strawberry Nesquik is standard rated.
In Global Switch Limited v HMRC [2017] TC06252, the First-Tier Tribunal agreed that a £297,845 surcharge, which was ultimately realised due to a £1,500 VAT error, was appropriate.