VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

In The Lilias Graham Trust v HMRC [2021] UKUT 36, the Upper Tribunal (UT) upheld the First Tier Tribunal's (FTT) decision that a charity's single supply was exempt for VAT as welfare services and the integral supply of accommodation could not be standard-rated.

The Northern Ireland Protocol means that while the UK has transitioned out of the EU, Northern Ireland (NI) has kept closer links to the EU. What is the impact of those links on trade between Northern Ireland and the rest of the UK?

In HMRC v News Corp UK & Ireland Limited [2021] EWCA Civ 91, the Court of Appeal reversed the decision made by the Upper Tribunal (UT), finding that electronic versions of newspapers should be standard rated for VAT.

In Healthspan Limited v HMRC [2020] TC07979, the First Tax Tribunal (FTT) held that supplies of goods by a business established in Guernsey to consumers in the UK were liable to UK VAT under the distance selling rules.

In GLS Limited (GLS) v HMRC [2020] TC07985, HMRC assessed output VAT on unknown income following a visit to the company's premises. The taxpayer claimed it was from loans. The First Tier Tribunal (FTT) found that HMRC had wrongly rejected evidence of actual and enforceable loan agreements.

In St James Marketing Limited v HMRC [2020] TC07975, First Tier Tribunal (FTT) dismissed the appeal of late payment/filing of VAT as reasonable excuse offered.

UK VAT registered business supplying B2C digital services in the EU have until 10 February 2021 to register under the EU non-union MOSS scheme for January 2021 supplies. 


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