VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

HMRC have issued Revenue and Customs Brief 12 (2021): VAT treatment of gaming machines from 6 December 2005 to 31 January 2013. It sets out how customers with appeals related to the VAT treatment of gaming machines during this period can claim VAT refunds.

In Scanwell Logistics (UK) Limited v HMRC [2021] TC8207, the First Tier Tribunal (FTT) agreed that Onward Supply Relief was not available to a company acting as an import agent. They had not made a supply of goods.

HMRC have launched a new online service for VAT registered businesses to apply for a Partial Exemption Special Method (PESM). This is accompanied by an updated checklist of information that should be provided with applications.

HMRC have published Revenue & Customs Brief 11 (2021): ‘VAT liability of Coronavirus (COVID-19) testing services’, which explains the VAT treatment of COVID-19 tests.

In KSM Henryk Zeman SP Z.o.o. v HMRC [2021] UKUT 0182 a Polish company was caught out by a badly worded VAT registration form and HMRC rejected its registration. It should, in fact, have been registered and HMRC later raised a VAT assessment. Did it have a legitimate expectation to expect fairness?

In Claims Advisory Group Limited v HMRC [2021] UKUT 0199, the Upper Tribunal (UT) confirmed that claiming Payment Protection Insurance (PPI) compensation on behalf of individuals was not a VAT exempt supply of insurance services.

In Brough East Yorkshire Limited v HMRC [2021] TC08213, a Chinese takeaway successfully appealed a £34k VAT assessment. HMRC's one-night invigilation of the food outlet failed to note suppression of cash and the methodology in making the assessments was flawed by poor sampling and failure to adjust for price changes.


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