VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

In Andrew Ellis and Jane Bromley v HMRC [2021] TC08277, the First Tier Tribunal (FTT) found that more than one VAT repayment claim could be made by DIY housebuilders during construction, despite HMRC’s policy to the contrary.

In Hampton George Hewitt v HMRC [2021] UKUT 0231, the Upper Tribunal (UT) dismissed the taxpayer's late appeal against HMRC for the cancellation of his farmer's flat-rate certificate for VAT. The EU's 'principle of effectiveness' was found not to require anything more than the existing 30-day appeal time.

In a bid to improve Making Tax Digital for VAT compliance, HMRC will remove the ability to submit online VAT returns for some businesses that should have signed up for it.

In G B Fleet Hire Limited v HMRC [2021] UKUT0225, the Upper Tribunal (UT) allowed an appeal against a First Tier Tribunal (FTT) decision to strike out the taxpayers claim. The FTT had wrongly concluded the taxpayer had dropped its case that supplies were zero-rated.

In Babylon Farm Limited v HMRC [2021] UKUT 0224, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had erred in law but had been correct to find the appellant's hay supplies did not constitute an economic activity for VAT purposes.

In United Grand Lodge of England v HMRC [2021] TC08250, the First Tier Tribunal (FTT) found that membership fees charged to Freemasons were not exempt from VAT.

In Richmond Hill Developments (Jersey) Limited v HMRC [2021] TC08232, the First Tier Tribunal (FTT) held that the substantial reconstruction of a listed building was not sufficient enough to meet the criteria for zero-rating and recovery of the related input tax.


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