HMRC has issued new guidance on when goods are supplied on approval and how this impacts the time of supply and postage costs for VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
The Law Society has issued interim guidance to its members on property search fees and when these should be disbursements. This follows the decision in Brabners, which suggested the fees could never qualify as disbursements.
In The Rank Group PLC v HMRC [2018] TC06483, the First-Tier Tribunal (FTT) found that where input VAT overclaimed is set-off against output VAT overpaid, that input VAT has not been 'paid' back to HMRC.
In Redwood Birkhall Limited v HMRC [2018] UKUT 0189, the Upper Tribunal (UT), concluded that the share of a group discount negotiated, and retained in part, by a company on behalf of multiple companies, was a VAT supply of services to those companies.
In Essex International College Limited v HMRC [2018] TC06343, the First-Tier Tribunal (FTT) found that the College provided a VAT single supply of standard rated education. It was not an eligible body providing exempt education and it could not separate the books into a zero-rated supply.
In Wakefield College v HMRC [2018] EWCA Civ 952, the Court of Appeal decided that income from students who are partly subsidised and pay a small additional fee for courses, amounted to a business activity. This meant the construction of a new building could not be zero-rated.
In Marks and Spencers plc v HMRC [2018] TC06471, the First-Tribunal (FTT) found that the free wine in the 'dine in for £10' offer is not a gift and part of the cost of the deal must be standard rated.