In J & B Hopkins Ltd [2018] UKUT 0382, a subcontractor was held liable for VAT on work to a contractor who did not have to charge VAT. The subcontractor could not later recover the VAT because the contractor had gone into liquidation.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In All Answers Ltd v HMRC [2018] TC06845, the FTT held that there was no agency arrangement in an essay-writing service for students.
In Bramall Contracts Limited & Others v HMRC [2018] TC06648, the FTT concluded that VAT had not been recovered on cars purchased for leasing and therefore the repayment claim for VAT on manufacturer bonuses were recoverable.
In Olive Garden Catering Ltd v HMRC [2018] TC06595, the FTT found that the appellant was providing separate supplies of food and services, but the services provided were standard rated catering services.
In Kinnerton Confectionery Limited v HMRC [2018] TC06548¸ the FTT decided that an allergen-free chocolate bar was standard rated as confectionary and was not food for VAT.
In Marcandi Ltd v HMRC [2018] C-544/16, the CJEU ruled that the bid credits sold by ‘Madbid’ to penny-auction participants are supplies of services, not part of the supply of goods.
HMRC have published ‘VAT, Air Passenger Duty and Tourism in Northern Ireland: summary of responses’ and, whilst acknowledging the effect on tourism of these taxes, will take no action at this stage.