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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue and Customs Brief 5 (2023): ‘Change to the VAT treatment of medical services carried out by non-registered staff directly supervised by pharmacists’, which explains the amended rules which apply from 1 May 2023.
In Innate-Essence Limited (t/a The Turmeric Co) v HMRC [2022] TC08792, the First Tier Tribunal (FTT) agreed with the appellant that turmeric shots were a food item and not a beverage, allowing them to benefit from zero-rating.
In Rolldeen Estates Limited v HMRC [2023] TC08783, the First Tier Tribunal (FTT) found that a company which claimed its Option To Tax (OTT) on a property was invalid had no right of appeal against HMRC’s decision to treat the OTT as validly exercised.
In Moulsdale t/a Moulsdale Properties v HMRC [2023] UKSC12, the Supreme Court held that the seller of an opted-to-tax property did not meet the provisions allowing him to disapply the option to tax. He was not a developer, the sale was not exempt and VAT should have been charged.
In HMRC v The Prudential Assurance Company Limited [2023] UKUT 54, the Upper Tribunal allowed an appeal by HMRC against a decision that no VAT was due on services provided whilst the parties were members of a VAT group that were not invoiced or paid until after the supplier left the group.
In The Young Driver Training Limited v HMRC [2023] TC08748, the First Tier Tribunal (FTT) found that the appellant was not making supplies that included the right to admission and so was unable to take advantage of the temporary reduced VAT rate introduced during the pandemic.