In Y4 Express Limited v HMRC [2022] UKUT 00040, the Upper Tribunal (UT) found that a company could not recover VAT on delivery charges as its suppliers were not in business.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue and Customs Brief 3 (2022): ‘Postponed VAT accounting and businesses registered under the Flat Rate Scheme’. This details how VAT on imports should be accounted for by VAT Flat Rate Scheme (FRS) users from 1 June 2022.
In Regency Factors PLC v HMRC EWCA Civ 103, the Court of Appeal (CoA) dismissed a claim for VAT bad debt relief by a company which did have bad debts but which was unable to claim them in the prescribed way: its accounting system would not facilitate a proper claim.
HMRC have published Revenue and Customs Brief 2 (2022) ‘VAT early termination fees and compensation payments’. This details their revised policy effective from 1 April 2022 and clarifies the VAT treatment of dilapidations.
In Julie Lalou T/A Dogs Delight v HMRC [2022] TC08380, the First Tier Tribunal (FTT) found that the supply of dog grooming courses was not exempt from VAT as it was not demonstrated that it was a subject ordinarily taught in schools or universities.
In Flying Spur Limited v HMRC [2022] TC08360, the First Tier Tribunal (FTT) refused permission for a late appeal against HMRC’s cancellation of a company’s VAT registration.
In Zipvit Ltd v HMRC (Case C-156/20) (13 January 2022), the CJEU found that VAT was not due or paid on Mailmedia services supplied by Royal Mail. This blocked Zipvit Ltd from recovering input VAT on the supplies.