VAT Cases & News

HMRC have published 'Revenue & Customs Brief 8 (2026): UK VAT refunds for non-UK businesses in a VAT group'. It explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims, including transitional arrangements and how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.

In Luxurico Ltd v HMRC [2026] TC10001, the First Tier Tribunal found that input VAT was recoverable on a luxury vehicle hire business's acquisition of a hypercar. The taxpayer's intention at the time of purchase, and not necessarily subsequent use, was key in determining allowability.

HMRC have published 'Revenue & Customs Brief 9 (2026): VAT liability of supplies of education by alternative providers of higher and further education’. It provides an update on HMRC’s position on the VAT treatment of supplies of education and closely related services provided by alternative providers.

In Shahid Hussain v HMRC [2026] TC09992, the First Tier Tribunal found that HMRC were unable to produce detailed workings for VAT assessments. Nor could they adequately explain the methodology used to arrive at their figures.

In Tapi Carpets Limited v HMRC [2026] TC09975, the First Tier Tribunal (FTT) found that a flooring retailer was not liable to account for VAT on fitting fees paid by its customers directly to independent fitters. The fitters supplied their services to the customers as principal, rather than to the retailer under a sub-contracting arrangement.

HMRC have published 'Revenue & Customs Brief 6 (2026): VAT liability of the supply of temporary medical staff'. The Brief sets out HMRC's finalised position on the supplies of GMC-registered locum doctors, including whether supplies via an employment business may fall within the VAT exemption under Item 5, Group 7, Schedule 9, VAT Act 1994.