HMRC have opened a new consultation 'VAT and value shifting' inviting views on a proposed revision to the rules for apportioning consideration between supplies with mixed liabilities in a single transaction.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Michael Robinson v HMRC [2020] TC7951, First Tier Tribunal (FTT) dismissed the penalties on Mr Robinson for his continued use of cash accounting basis after the withdrawal of cash basis on the grounds that this was not a deliberate behaviour.
Revenue & Customs Brief 1 (2021): 'The introduction of the zero rate of VAT for Women’s Sanitary Products' confirms that from 1 January 2021 women's sanitary products will be zero-rated.
In ITH Comercial Timişoara (ITH) VAT case C-734/19, the European Court of Justice (CJEU) ruled that the right to deduct input VAT on goods and services acquired with a view to carrying out taxable operations is maintained when a project is abandoned due to circumstances beyond the control of the taxable person.
In Weindel Logistik Service (Weindel) VAT case C-621/19, the European Court of Justice (CJEU) ruled that there is no right to deduct import VAT if the importer of record is not the owner of the goods.
In Kaplan International Colleges UK Ltd (KIC) v HMRC (C 77/19), the European Court of Justice (CJEU) ruled that HMRC was correct to deny a cost-sharing exemption to its subsidiary in Hong Kong.
In Safestore Ltd v HMRC [2020] UKUT 322, the Upper Tribunal (UT) confirmed Safestore acted as an insurance principal when selling products for its Guernsey business.