In Summit Electrical Installations Limited v HMRC [2017] TC06006, the First-Tier Tribunal (FTT) ruled that where a building qualifies as both a dwelling and a relevant residential property the subcontractor can give the dwelling precedent and zero rate its supplies.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In HMRC v Languard Homes Ltd and DD & DM Macpherson v HMRC [2017] UKUT 307, the Upper Tribunal concluded that the sale of a converted residential property, which was previously part residential and part commercial, cannot be zero rated.
In J & B Hopkins Ltd v HMRC [2017] TC05874 and J & B Hopkins Ltd [2018] UKUT 0382 a taxpayer could not avoid paying HMRC the VAT assessment merely because it could no longer charge the VAT to its insolvent customer.
In HMRC v Investment Trust Companies (in liquidation) [2017] UKSC 29 the Supreme Court concluded that where HMRC have erred in VAT law, only the business who paid HMRC erroneous VAT can claim it back.
In Gekko & Company Ltd v HMRC [2017] TC06029 the First Tier Tribunal (FTT) heavily criticised HMRC’s handling of the (VAT) case and went so far as to award costs against HMRC.
In Shields & Sons Partnership v HMRC [2017] C262-16 the European Court gave a preliminary ruling confirming that HMRC cannot withdraw a farmer from the VAT Flat rate scheme merely because they would be substantially better off than if they registered for VAT.
In RGEX GmbH v Finanzamt Neuss (C-374/16) and Finanzamt Bergisch Gladbach v Igor Butin (C-375/16) the Advocate General of the CJEU preliminarily ruled that a letter box address is sufficient for VAT invoice purposes.