VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

HMRC have published a summary of responses to their consultation  'VAT and value shifting' which took place earlier this year. 

In William Newman v HMRC [2021] TC08147, the First Tier Tribunal (FTT) struck out the taxpayer’s appeal against HMRC’s refusal to accept a late 'option to tax' notification.

In Daniel O'Doherty v HMRC [2021] TC08193, the First Tier Tribunal (FTT) rejected the appeal of a sole director of a company who was issued with a Personal Liability Notice (PLN) for the VAT penalties raised by HMRC on his company. He was unable to provide any evidence to show the underlying assessments were wrong.

In C-156/20 Zipvit Limited v HMRC, the EU Advocate General (AG), on referral from the Supreme Court, ruled that whilst the principle of a deduction for VAT existed even when no VAT had been charged, no deduction was possible without a VAT invoice.

In Colin Newell v HMRC [2021] TC08149, the First Tier Tribunal (FTT) found that the receipt of subsidy income by a biomass business did not restrict input VAT recovery.

HMRC have published Revenue & Customs Brief 10 (2021): ‘Repayment of VAT to overseas businesses not established in the EU and not VAT registered in the UK’, announcing a further deadline extension to the overseas VAT refund scheme, following continued difficulties faced by some businesses in obtaining a certificate of status. 

In CMJ (Aberdeen) Ltd v HMRC [2021] TC8140 the First Tier Tribunal (FTT) dismissed an appeal against assesments to standard-rate the supply of a new build dwelling. It could not be zero-rated as it did not have valid planning consent when the construction works commenced.


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