In HMRC v Hotel La Tour Ltd [2023] UKUT 178, the Upper Tribunal (UT) agreed with the First Tier Tribunal (FTT) that Input VAT can be reclaimed on professional services fees incurred during a share sale, where the ultimate economic purpose was fundraising.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Illuminate Skin Clinics Ltd v HMRC [2023] TC08846, the First Tier Tribunal (FTT) found that supplies of aesthetic, skincare and wellness treatments were standard rated for VAT as they did not constitute medical care.
HMRC have published 'Revenue and Customs Brief 6 (2023): VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd' which gives an update on the VAT treatment of supplies of digital newspapers and other digital publications before 1 May 2020.
In WWM Rose & Sons Ltd v HMRC [2022] TC08830, the First Tier Tribunal (FTT) dismissed an appeal against a VAT surcharge for late payment. An agreement to pay by direct debit payment did not change the statutory VAT due date. Time To Pay must be agreed before the due date.
In Steven James Mort v HMRC [2023] TC 8801, the First Tier Tribunal (FTT) partially allowed an appeal under the VAT DIY Housebuilders scheme, finding that items for which HMRC had disallowed a refund on the basis that they should have been zero-rated, had been correctly standard-rated, meaning a refund was due.
In Sports Invest UK Limited v HMRC [2023] TC08797, the First Tier Tribunal (FTT) dismissed HMRC's claim that commission paid to the appellant by Inter Milan was subject to UK VAT, as a supply of services to a footballer. The services were supplied to Inter Milan and the place of supply was Italy, not the UK.
In Yorkshire Agricultural Society v HMRC [2023] TC08803, the First Tier Tribunal (FTT) found that entry fees to an annual agricultural show were exempt from VAT and HMRC had raised a VAT assessment out of time.