HMRC have published Revenue and Customs Brief 3 (2023) ‘Changes to VAT treatment of local authority leisure services’. The supply of leisure services by local authorities to members of the public may now be treated as non-business.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue and Customs Brief 2 (2023) ‘VAT and value shifting consultation update’. This sets out HMRC’s conclusions and actions taken following the VAT and value shifting consultation in 2021.
In Fareham College v HMRC [2023] TC08740, the First Tier Tribunal (FTT) found that supplies made to members of the public by a college’s training restaurant were exempt from VAT.
In Fulfillment Logistics UK Limited v HMRC [2023] TC08736, the First Tier Tribunal (FTT) found that the Kittel principle did apply to deny input VAT repayment but the customer also had a fixed place of business in the UK for supply purposes, meaning output VAT was due.
In Paradise Wildlife Park Limited v HMRC [2023] TC08729, the First Tier Tribunal (FTT) rejected the appellant's claim that the costs incurred in the building of its walk-through dinosaur exhibit and lion enclosure were zero-rated for VAT as the exhibit was not a building and not intended solely for use for a charitable purpose.
In News Corp UK & Ireland v HMRC [2023] UKSC7, the Supreme Court (SC) found electronic versions of newspapers were standard rated for VAT purposes prior to 1 May 2020.
In Gray & Farrar International LLP v HMRC [2023] EWCA Civ 121, the Court of Appeal (CoA) found that a dating matchmaking service was not a supply of consultancy for VAT purposes. This meant the services were within the scope of UK VAT when supplied to clients outside of the UK and EU.