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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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.
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.
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.