In Glanbia Milk Limited v HMRC [2022] TC08439, the First Tier Tribunal (FTT) found that a number of food products described as flapjacks were not zero-rated cakes for VAT purposes, but were standard rated confectionery.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue & Customs Brief 7 (2022): ‘Claiming a repayment of overpaid import VAT on the importation of dental prostheses into the UK’, following a backdated VAT exemption being introduced.
HMRC have published Revenue and Customs Brief 6 (2022): ‘Lennartz mechanism and VAT accounting’. This explains what VAT registered businesses should do to avoid overpaying VAT where they continue to use the Lennartz mechanism in respect of arrangements entered into before 22 January 2010.
In First Alternative Medical Staffing Ltd & Anor v HMRC [2022] EWCA Civ 249, the Court of Appeal (CoA) found that a VAT concession relating to nursing agencies supplying staff to third parties could not be relied on retrospectively.
HMRC have published Revenue and Customs Brief 5 (2022): ‘Revised guidance on dealing with VAT grouping registration’. This replaces guidance issued in November 2021 and explains the actions businesses should now take when filing VAT returns while waiting for a decision on their VAT grouping application.
HMRC have published Revenue and Customs Brief 4 (2022): ‘End-customer claim refunds of VAT wrongly charged’. This brief details how end-customer claims to HMRC for refunds of VAT which has been overpaid to a supplier are impacted following the UK’s withdrawal from the European Union (EU).
In HSBC Electronic Data Processing (Guangdong) Ltd & Ors v HMRC [2022] UKUT 00041, the Upper Tribunal (UT) found that in terms of VAT grouping, ‘established’ and ‘fixed establishment’ should be interpreted in accordance with CJEU case law concerning the place of supply rules, although their meaning is highly fact-sensitive.