Summaries of interesting VAT cases for the SME owner.
In Sammy Garden Ltd v HMRC [2025] TC09443, the First Tier Tribunal (FTT) found that a company was liable to account for output VAT from its effective date of registration, not the date that it learned of its VAT registration which was nearly four months later.
The Chartered Institute of Taxation (CIOT) is warning that VAT phishing emails are resurging. HMRC emphasises that they do not embed web links in their communications.
In Cheema Constructions Services Ltd & Anor v HMRC [2025] TC09418, the First Tier Tribunal (FTT) found that the Kittel Principle did not apply, meaning the company was entitled to reclaim input VAT.
In Sonder Europe Ltd v HMRC [2025] UT 00014, the Upper Tribunal (UT) found that the supply of holiday apartments to travellers was not eligible for the Tour Operators’ Margin Scheme (TOMS).
In Global By Nature Ltd v HMRC [2025] TC09396, the First Tier Tribunal (FTT) found that powdered vegan food supplements were zero-rated for VAT.
In Yorkshire Agricultural Society v HMRC [2025] UKUT 00004, the Upper Tribunal found that admission fees to the ‘Great Yorkshire Show’ were an exempt supply for VAT purposes.
HMRC have published 'Revenue and Customs Brief 3 (2024): VAT on cladding remediation work' which clarifies HMRC's policy on the recovery of VAT incurred on cladding remediation works which are carried out on existing residential buildings.