In Mandarin Consulting Limited v HMRC [2020] TC07714, a career coaching service to Chinese students was found to be a supply of consultancy services and not of education. The place of the supply for VAT turned on whether the supply was made to students staying in the UK or their parents in China.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In HMRC v Thorsteinn Gardarsson [2020] UKUT 0099, an appeal as to whether a day planner was a book or stationery has been remitted back to the First Tier Tribunal (FTT) to be remade. The FTT applied the wrong tests.
In Premspec Group Ltd v HMRC [2019] TC01374, there was no disallowance of unpaid input VAT under the six-month rule for invoiced supplies between related companies. The relevant consideration was found to be payable later than the date of supply.
Revenue & Customs Brief 5 (2020): VAT treatment on fixed-odds betting terminals (FOBTs) and gaming machines, explains HMRC’s position following the joint decision of the Upper Tribunal on 15 April 2020 of The Rank Group Ltd UT/2018/0149 and Done Brothers (Cash Betting) Ltd (and others) UT/2018/0150.
In HMRC v Royal Opera House Covent Garden Foundation [2020] UKUT 0132 (TCC), the Upper Tribunal (UT) rejected a claim for the input VAT attribution of opera production costs to the taxable supply of catering and ice-cream to visitors. There were two separate supplies and the supply of opera was not a direct cost component of the supply of catering.
In Simon & Joanne Cotton v HMRC [2020] TC07553, the First Tier Tribunal (FTT) allowed a VAT DIY Builder's Scheme refund. HMRC had refused the claim on the grounds that there was a change of use and it was out of time.
In Madinatul Uloom Al Islamiya ('the College') v HMRC [2019] TC07433, the First Tier Tribunal (FTT), found that the construction of a new multi-functional hall did not qualify for VAT zero-rating.
- VAT due on payment handling services
- Supply of GPs was a service and VAT exemption upheld
- VAT zero-rating penalty: Reliance on counsel was reasonable
- No VAT registration for illegal tobacco
- Developer's lack of records results in VAT assessment
- Fund set-up and operating costs incurred by general partner are fully recoverable