HMRC have published ‘Alternative method of VAT collection – split payment: summary of responses’, and have indicated they will continue to work towards a viable alternative VAT collection model for online shopping.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Loughborough Students’ Union v HMRC [2018] UKUT 3434, the Upper Tribunal (UT) decided that sales of stationery, art materials and other items from student union shops were not exempt supplies closely related to education.
In Ryanair Ltd v The Revenue Commissioners [2018] C-249/17, the CJEU ruled that VAT on consultancy fees relating to a failed takeover bid was recoverable as Ryanair intended to make taxable management services to the target.
In HMRC v Volkswagen Financial Services (UK) Ltd [2018] C-153/17, the Court of Justice of the European Union (CJEU) ruled that HMRC cannot treat VAT on costs as solely relating to exempt finance charges when a car is bought on HP.
In HMRC v Stoke By Nayland Golf and Leisure [2018] UKUT 308 (TCC), the Upper Tribunal (UT) found that a member’s golf club was not commercially influenced by the adjacent hotel. VAT exemption on green fees applied.
In The Wellcome Trust Ltd v HMRC [2018] TC06761, the First-Tier Tribunal (FTT) concluded that the charity did not have to account for VAT under the reverse charge as the costs did not relate to an economic business activity.