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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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.
In Errol Willy Salons Ltd v HMRC [2022] TC08370, the First Tier Tribunal (FTT) found that the supply of rooms within a salon to beauticians were exempt from VAT. Additional services provided were ancillary to the supply.