In Simple Energy Limited v HMRC [2023] TC08995, the First Tier Tribunal (FTT) found that credits awarded to customers under a refer-a-friend scheme amounted to a non-monetary consideration for the supply of energy. Output VAT was due on the value of the credits.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published responses to their call for evidence 'VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions'. A variety of responses were received and an extension to the relief is planned.
A number of changes to the VAT DIY housebuilders scheme came into effect on 5 December 2023. Claims can now be made online and the claim deadline is extended to six months. HMRC have just published a collection of new guidance on obtaining a VAT refund under the scheme.
In Gap Group Limited v HMRC [2023] TC08991, the First Tier Tribunal (FTT) found that the supply of diesel in respect of hired plant was, for VAT purposes, separate from the supply of plant hire. Reduced rating applied to the fuel.
In Derby Quad Limited v HMRC [2023] TC08972, the First Tier Tribunal (FTT) rejected Derby Quad’s argument that their live screenings of plays were the same as attending the performance in person. As a result, the entrance fee was standard-rated.
In Piramal Healthcare UK Limited v HMRC [2023] TC08966, the First Tier Tribunal (FTT) found that a company importing pharmaceutical goods to the UK could not recover the associated import VAT. The goods had not been used as a cost component in an onward supply.
In JPMorgan Chase Bank NA v HMRC [2023] TC8957, the First Tier Tribunal (FTT) found that support and business services supplies were one single supply not qualifying as exempt from VAT. The intra-group supply exemption was disapplied due to elements coming from overseas, meaning all elements had to be standard-rated.