VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

In The Ice Rink Company Ltd Planet Ice (Milton Keynes) Ltd v HMRC [2020] TC07829, the First Tier Tribunal (FTT) held that the hire of children's ice skates is a separate supply from admission to an ice rink.

HMRC have written letters to VAT-registered businesses in Great Britain trading with the EU and/or the rest of the world, highlighting actions they need to take to continue trading with the EU from 1 January 2021.

HM Treasury has published a new call for evidence on 'VAT Grouping - Establishment, Eligibility and Registration'. Its aim is to gather the views of businesses that utilise VAT grouping provisions, including partnerships and other interested parties, on how these affect them and the wider business environment.

Revenue and Customs Brief 13 (2020): 'VAT charity digital advertising relief', sets out HMRC's policy in different digital advertising situations. The guidance may contain some errors.

HMRC have published Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments. It confirms a change in their view of the VAT treatment of contract termination payments. 

In FW Services Ltd v HMRC [2020] TC 07636, the First Tier Tribunal (FTT) concluded the ‘best judgment’ assessment made by HMRC was excessive in the absence of supporting evidence.  

In RPS Health in Business Limited, RPS Consulting Services Limited T/A RPS Business Healthcare v HMRC [2020] TC 07643, the First Tier Tribunal (FTT) held that occupational health services were exempt from VAT as supplies of medical care, not standard-rated as supplies of advice to employers.


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