Case Alert Wakefield College - Upper Tribunal
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Indirect Tax Update 02/2016
HMRC has announced a consultation on expanding eligibility for UK VAT groups following recent EU court rulings. Currently, only corporate bodies under common control can form a UK VAT group. The consultation will consider allowing partnerships and other entities to join VAT groups in order to comply with EU law. HMRC will consult with trade groups before developing policy options for broader consultation later in the year. The changes are aimed at aligning UK VAT law with the EU principle of fiscal neutrality established in recent court cases.
ITU 14/2016
This week the Upper Tribunal issued several judgments:
1. In Hammonds of Knutsford Ltd, the Tribunal dismissed an application for judicial review from a company that had a claim for excise duty drawback refused by HMRC due to failure to comply with an inspection condition, even though the breach was minor.
2. In Darren & Lynn Hills, the Tribunal found that an option to tax was validly exercised by property sellers, so VAT was due on the sale.
3. In SAE Education Ltd, the Tribunal again concluded that a commercial provider of university education was not an "eligible body" and its education supplies were standard rated for VAT, but the taxpayer is expected to appeal.
ITU 29/2016
The document summarizes recent indirect tax developments in the UK, including:
1) The Advocate General issued an opinion in the long-running British Film Institute (BFI) case, finding that Member States have discretion to determine which cultural services qualify for VAT exemption as long as equal treatment and fiscal neutrality principles are followed.
2) HMRC issued guidance on new "use and enjoyment" rules for insurance repair services, placing the VAT on services in the country where the insured person is located rather than where the insurer is located.
3) The Upper Tribunal ruled against Hasbro in the tariff classification of toys called Beyblades, finding they were correctly classified as toys rather than games.
Case Alert - SAE Education Ltd - Court of Appeal
Court of Appeal judgment on whether taxpayer is a College of a University and thus, an eligible body for VAT purposes
Case Alert - Summit Electrical Installations Ltd - FTT
This document summarizes a tax tribunal case relating to VAT liability for a sub-contractor's services on a building project. It provides background on UK VAT law regarding zero-rating of certain property developments. The tribunal found that the student accommodation in question met the definition of a dwelling, allowing the sub-contractor's appeal of VAT charged on its services. While HMRC argued the development could only be zero-rated based on the certificate provided, the tribunal dismissed this view and confirmed zero-rating could apply to both the main contractor and sub-contractor in such cases.
Indirect Tax Update 07/2015
The document summarizes three indirect tax cases from the First-tier Tribunal (FTT). The first case discusses Taylor Wimpey PLC's loss in its battle against HMRC regarding VAT on "white goods" supplied with new homes. The second case discusses the FTT ruling that reward payments for achieving sales targets can reduce the taxable amount for VAT purposes. The third case summarizes additional FTT decisions regarding partial VAT exemption methods and late filing of VAT refund appeals.
Case Alert - The Open University
This document summarizes a court case between HMRC (Her Majesty's Revenue and Customs) and The Open University regarding VAT (value added tax) charged by the BBC on educational programming and broadcasting services provided to The Open University over many years. The Court of Appeal unanimously dismissed HMRC's appeal and found that the BBC, while not a public body, had similar educational objectives and its services to The Open University were closely related to education and should have been VAT exempt. The ruling determined that UK law needs to be amended to properly implement the VAT Directive and recognize bodies with similar educational aims to public bodies.
Indirect Tax Update 19/2015
HMRC has issued a brief responding to two recent court losses on VAT issues. It does not agree with a Court of Appeal decision that compound interest is owed on VAT refunds and will seek to appeal to the Supreme Court. It also lost an appeal at the Upper Tribunal regarding input VAT recovery for management fees related to the University of Cambridge's endowment fund. The Upper Tribunal affirmed the fees were overhead costs for the University's non-business activities.
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Indirect Tax Update 02/2016
HMRC has announced a consultation on expanding eligibility for UK VAT groups following recent EU court rulings. Currently, only corporate bodies under common control can form a UK VAT group. The consultation will consider allowing partnerships and other entities to join VAT groups in order to comply with EU law. HMRC will consult with trade groups before developing policy options for broader consultation later in the year. The changes are aimed at aligning UK VAT law with the EU principle of fiscal neutrality established in recent court cases.
ITU 14/2016
This week the Upper Tribunal issued several judgments:
1. In Hammonds of Knutsford Ltd, the Tribunal dismissed an application for judicial review from a company that had a claim for excise duty drawback refused by HMRC due to failure to comply with an inspection condition, even though the breach was minor.
2. In Darren & Lynn Hills, the Tribunal found that an option to tax was validly exercised by property sellers, so VAT was due on the sale.
3. In SAE Education Ltd, the Tribunal again concluded that a commercial provider of university education was not an "eligible body" and its education supplies were standard rated for VAT, but the taxpayer is expected to appeal.
ITU 29/2016
The document summarizes recent indirect tax developments in the UK, including:
1) The Advocate General issued an opinion in the long-running British Film Institute (BFI) case, finding that Member States have discretion to determine which cultural services qualify for VAT exemption as long as equal treatment and fiscal neutrality principles are followed.
2) HMRC issued guidance on new "use and enjoyment" rules for insurance repair services, placing the VAT on services in the country where the insured person is located rather than where the insurer is located.
3) The Upper Tribunal ruled against Hasbro in the tariff classification of toys called Beyblades, finding they were correctly classified as toys rather than games.
Case Alert - SAE Education Ltd - Court of Appeal
Court of Appeal judgment on whether taxpayer is a College of a University and thus, an eligible body for VAT purposes
Case Alert - Summit Electrical Installations Ltd - FTT
This document summarizes a tax tribunal case relating to VAT liability for a sub-contractor's services on a building project. It provides background on UK VAT law regarding zero-rating of certain property developments. The tribunal found that the student accommodation in question met the definition of a dwelling, allowing the sub-contractor's appeal of VAT charged on its services. While HMRC argued the development could only be zero-rated based on the certificate provided, the tribunal dismissed this view and confirmed zero-rating could apply to both the main contractor and sub-contractor in such cases.
Indirect Tax Update 07/2015
The document summarizes three indirect tax cases from the First-tier Tribunal (FTT). The first case discusses Taylor Wimpey PLC's loss in its battle against HMRC regarding VAT on "white goods" supplied with new homes. The second case discusses the FTT ruling that reward payments for achieving sales targets can reduce the taxable amount for VAT purposes. The third case summarizes additional FTT decisions regarding partial VAT exemption methods and late filing of VAT refund appeals.
Case Alert - The Open University
This document summarizes a court case between HMRC (Her Majesty's Revenue and Customs) and The Open University regarding VAT (value added tax) charged by the BBC on educational programming and broadcasting services provided to The Open University over many years. The Court of Appeal unanimously dismissed HMRC's appeal and found that the BBC, while not a public body, had similar educational objectives and its services to The Open University were closely related to education and should have been VAT exempt. The ruling determined that UK law needs to be amended to properly implement the VAT Directive and recognize bodies with similar educational aims to public bodies.
Indirect Tax Update 19/2015
HMRC has issued a brief responding to two recent court losses on VAT issues. It does not agree with a Court of Appeal decision that compound interest is owed on VAT refunds and will seek to appeal to the Supreme Court. It also lost an appeal at the Upper Tribunal regarding input VAT recovery for management fees related to the University of Cambridge's endowment fund. The Upper Tribunal affirmed the fees were overhead costs for the University's non-business activities.
UK: VAT use and enjoyment on advertising services?
Under normal VAT rules, the place of supply of a business to business (B2B) service is the place where the recipient of the service belongs. In cases where the recipient is outside the European Union, this generally means that no EU VAT is chargeable.
However, 'use and enjoyment' provisions allow national Tax Authorities to adapt the place of supply rules outlined in the Principle VAT Directive where they perceive a threat to the tax yield.
We understand that HM Treasury is considering ways in which these provisions could be enacted in relation to advertising services which could be detrimental to the Betting & Gaming Sector.
ITU 09/2016
The Court of Appeal unanimously dismissed HMRC's appeal in its ongoing battle with the Open University over VAT charges on services provided by the BBC. The Court ruled the BBC, as a public body with educational aims, qualified for VAT exemption when providing services to the OU. Additionally, the Advocate General issued an opinion that VAT is due on goods retained when a business ceases, even if the input tax adjustment period has expired. Finally, the Tax Tribunal ruled Air France must pay the higher APD rate for its Premium Economy flights, as those were not the lowest class of travel available.
ITU 332015
The First-tier Tax Tribunal issued a controversial decision ruling that VAT is due on the full consideration received by Adecco UK Ltd and others for supplying temporary workers to clients, contradicting an earlier similar case. The Court of Appeal decided to refer the Brockenhurst College case on whether supplies of catering and performances are 'closely related' to education to the European Court of Justice for guidance. The FTT also ruled in the golf clubs unjust enrichment case that 90% of VAT claims made should be repaid, constituting a major victory for the golf clubs against HMRC's position.
ITU 34/2016
The document summarizes three recent tax cases:
1) A UK tribunal ruled that a company conducting a management buyout could reclaim VAT on professional fees, as it was part of a VAT group whose overall activities were taxable. This prevents HMRC from isolating an entity within a VAT group.
2) An EU court advisor said Hungary cannot deny a taxpayer's VAT recovery after incorrectly applying the reverse charge mechanism, as that violates neutrality.
3) An EU court ruled that prize money for racehorses was not subject to VAT, and related training costs were deductible overhead, since the horses promoted the business. The training services themselves were taxed at the standard rate.
ITU 21/2016
The Upper Tribunal considered two cases related to VAT. In the first case, Zipvit lost its appeal in claiming VAT reimbursement from Royal Mail. The Upper Tribunal determined that without a valid VAT invoice, Zipvit had no right to reclaim input tax, even though VAT may have been properly chargeable. In the second case, the First-Tier Tribunal ruled that denying the same VAT exemption for welfare services to a for-profit organization as granted to charities violated the EU principle of fiscal neutrality. Additionally, the Upper Tribunal dismissed HMRC's appeal in the Imperial College case, requiring HMRC to abide by the terms of its original special VAT reimbursement agreement with universities.
ITU 31/2016
The Court of Justice ruled that Germany could not deny VAT exemption for the transfer of a vehicle from Germany to Spain by a taxpayer simply because the taxpayer failed to include a VAT number on the invoice, as long as the substantive requirements for exemption were met. The failure to comply with this formal requirement should not prevent exemption from being available, unless tax evasion was suspected. The German law preventing exemption due to missing a VAT number on the invoice violated the purpose of the VAT Directive.
Additionally, the Upper Tribunal affirmed that for VAT groups in the UK, the representative member of the group is entitled to receive any VAT refunds, even if another group member made the supplies and initially overpaid VAT. Individual group members cannot claim refund
Case alert Aspiro SA - Court of Justice
Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL), an international organization that provides assurance, tax, and advisory services. However, GTIL and each of its member firms (including Grant Thornton UK LLP) are separate legal entities - they are not a worldwide partnership and do not have agency relationships where one firm is liable for another's acts or omissions. Grant Thornton UK LLP published this disclaimer to clarify its independent legal status within the broader Grant Thornton organization.
Indirect Tax Update 10 May 2016
This weeks ITU looks at the VAT rules changes for advertising. The basic VAT place of supply rules – the rules that determine where a supply of goods or services takes place – sometimes lead to an outcome which results in supplies not being taxed at all. As an example, the place of supply of advertising services is currently where the customer belongs. If this is not within the EU, then no EU VAT is charged by an EU supplier even though the advertisement in question may be targeted at EU consumers.
HMRC has begun a consultation process which may lead to the imposition of a 'use and enjoyment' rule which, it hopes, will ensure that, in such circumstances, the place of supply will be determined by reference to where the service is targeted and consumed rather than simply where the customer is established.
UK: HMRC implements import anti-fraud campaign
1) HMRC estimates it loses £1.5 billion per year to import VAT fraud such as undervaluation of goods, misclassification of goods, and goods entering the UK but not being exported to another EU country as intended.
2) HMRC is considering shifting liability for this fraud to UK companies that unintentionally facilitate the fraud by providing online trading platforms for the goods.
3) Companies that operate online trading platforms are advised to implement robust due diligence procedures to verify third-party sellers to avoid potential future liability for unpaid import taxes and duties.
ITU 25/2016
This document summarizes three indirect tax cases:
1) The Court of Justice ruled that imposing VAT on legal fees in Belgium did not violate rights to an effective remedy or equality, as the VAT amount was not large enough to prevent access to justice.
2) The Court also ruled that using helicopters for flight training in Germany was not a "commercial use" and was therefore eligible for temporary import tax relief.
3) UK's Upper Tribunal dismissed an HMRC appeal and ruled that a rugby club's sports pavilion qualified for VAT zero-rating as a "village hall" despite being run only by the club.
Case alert Finmeccanica Global Services SpA - Court of Appeal
This document summarizes a court case regarding an Italian company, Finmeccanica Global Services SpA, that incurred costs in the UK and sought to reclaim VAT from the UK. The court ruled that Finmeccanica had made supplies in the UK by invoicing costs to other group companies for construction and operation of an enclosure at an air show. As making supplies in the country where VAT is claimed is not allowed, Finmeccanica was not entitled to the VAT refund. The court determined the essential service was making the air show event possible at that location and time, not advertising as Finmeccanica had argued.
Case Alert University of Huddersfield - Court of Appeal
The document summarizes a court case involving the University of Huddersfield and a VAT planning scheme. The Court of Appeal found that the university's scheme, which established a trust and construction company in order to claim VAT on refurbishment of a building for exempt educational use, constituted an abuse of law under EU principles. While such arrangements were once common, the emerging principles of EU law, including avoiding abuse of law, led HMRC to challenge artificial schemes that provide unwarranted tax advantages contrary to the purpose of VAT directives.
Case alert - Zipvit Ltd
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
Case alert - Heating and Plumbing Supplies Ltd
The document summarizes a tax tribunal case regarding a company that incurred professional fees during a management buyout. The tribunal ruled that as the buyout company and target formed a VAT group, they must be treated as a single taxable entity rather than in isolation. As the VAT group only made taxable supplies, it was entitled to reclaim all input VAT on the professional fees, even though the buyout company alone had no economic activity. The tribunal dismissed the tax authority's view that input VAT recovery should be denied if not claimable by the buyout company separately.
Indirect Tax Update 21/2014
The Court of Appeal ruled that HMRC has the power to offset a previous overclaim of input tax against an overpayment of output tax, even if the normal time limits would bar it. The case involved Birmingham Hippodrome Theatre, which had incorrectly accounted for and paid output tax on exempt box office receipts between 2000-2001. It also claimed input tax on refurbishment works. The Court ruled that HMRC could offset the input tax claimed in error against the theatre's claim for repayment of overpaid output tax, as both errors stemmed from the same original mistake regarding the VAT treatment of box office receipts. This outcome prevents unjust enrichment of the theatre by putting it in the position it would have been in had VAT
ITU 08/2017
The Supreme Court referred the VWFS case to the European Court of Justice to determine if VAT incurred on overheads can be apportioned between taxable and exempt supplies under EU law. The Advocate General issued opinions in two other cases. In the first case, the AG found that importers may be entitled to duty refunds going back three years if goods were later found faulty. In the second case, the AG disagreed with a previous opinion and found that banks and insurers could form cost sharing groups for VAT purposes.
Vat Alert - Distance Selling
This document summarizes a change in HMRC policy regarding the place of supply for VAT purposes of delivered goods sold across borders within the European Union. Specifically, HMRC has adopted an interpretation that the supplier is considered to be delivering the goods if they arrange transportation through a connected or third party, are involved in payment for delivery, or promote transportation services. This change means businesses must review their VAT arrangements for distance sales to other EU member states.
ITU 11/2016
The document summarizes three cases from the First-tier Tax Tribunal and Upper Tribunal:
1) The First-tier Tribunal upheld a £59,000 civil evasion penalty against a fish importer for failing to declare imports from Norway and avoiding £300,000 in customs duties. The Tribunal found the failure was deliberate and dishonest.
2) The First-tier Tribunal upheld a 60% civil evasion penalty against a taxpayer who claimed £34,000 in input VAT but provided no records to substantiate the claims during an HMRC inquiry.
3) The Upper Tribunal dismissed HMRC's appeal involving a Scottish farmer who purchased farm subsidy entitlement units. The Tribunal found the units were purchased for business purposes,
Indirect Tax Update 40/2014
The Upper Tribunal upheld the First-tier Tribunal's decision that the taxpayer failed to demonstrate that paying the disputed tax would cause hardship. As a result, the taxpayer must either pay the tax or withdraw its appeal. This case concerned VAT payments on mobile phones in 2006. HMRC claimed the phone model was not actually available then and assessed the taxpayer to recover the VAT. After years of litigation over hardship appeal rights, the Upper Tribunal dismissed all of the taxpayer's arguments, agreeing with the First-tier Tribunal's original decision. The taxpayer may now either pay the tax or withdraw its appeal.
ITU 10/2016
The document summarizes two key developments from the past week:
1) A Court of Justice ruling found that claims handling services provided to an insurer are not exempt from VAT as insurance transactions or related services. UK law will need to change and businesses providing these services should review their VAT position.
2) The UK budget announced new powers for HMRC to make online marketplaces jointly liable for VAT debts of overseas sellers on their platforms. This aims to reduce the estimated £365 million annual VAT loss from non-compliant foreign traders. Online portals will need to strengthen due diligence of sellers.
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UK: VAT use and enjoyment on advertising services?
Under normal VAT rules, the place of supply of a business to business (B2B) service is the place where the recipient of the service belongs. In cases where the recipient is outside the European Union, this generally means that no EU VAT is chargeable.
However, 'use and enjoyment' provisions allow national Tax Authorities to adapt the place of supply rules outlined in the Principle VAT Directive where they perceive a threat to the tax yield.
We understand that HM Treasury is considering ways in which these provisions could be enacted in relation to advertising services which could be detrimental to the Betting & Gaming Sector.
ITU 09/2016
The Court of Appeal unanimously dismissed HMRC's appeal in its ongoing battle with the Open University over VAT charges on services provided by the BBC. The Court ruled the BBC, as a public body with educational aims, qualified for VAT exemption when providing services to the OU. Additionally, the Advocate General issued an opinion that VAT is due on goods retained when a business ceases, even if the input tax adjustment period has expired. Finally, the Tax Tribunal ruled Air France must pay the higher APD rate for its Premium Economy flights, as those were not the lowest class of travel available.
ITU 332015
The First-tier Tax Tribunal issued a controversial decision ruling that VAT is due on the full consideration received by Adecco UK Ltd and others for supplying temporary workers to clients, contradicting an earlier similar case. The Court of Appeal decided to refer the Brockenhurst College case on whether supplies of catering and performances are 'closely related' to education to the European Court of Justice for guidance. The FTT also ruled in the golf clubs unjust enrichment case that 90% of VAT claims made should be repaid, constituting a major victory for the golf clubs against HMRC's position.
ITU 34/2016
The document summarizes three recent tax cases:
1) A UK tribunal ruled that a company conducting a management buyout could reclaim VAT on professional fees, as it was part of a VAT group whose overall activities were taxable. This prevents HMRC from isolating an entity within a VAT group.
2) An EU court advisor said Hungary cannot deny a taxpayer's VAT recovery after incorrectly applying the reverse charge mechanism, as that violates neutrality.
3) An EU court ruled that prize money for racehorses was not subject to VAT, and related training costs were deductible overhead, since the horses promoted the business. The training services themselves were taxed at the standard rate.
ITU 21/2016
The Upper Tribunal considered two cases related to VAT. In the first case, Zipvit lost its appeal in claiming VAT reimbursement from Royal Mail. The Upper Tribunal determined that without a valid VAT invoice, Zipvit had no right to reclaim input tax, even though VAT may have been properly chargeable. In the second case, the First-Tier Tribunal ruled that denying the same VAT exemption for welfare services to a for-profit organization as granted to charities violated the EU principle of fiscal neutrality. Additionally, the Upper Tribunal dismissed HMRC's appeal in the Imperial College case, requiring HMRC to abide by the terms of its original special VAT reimbursement agreement with universities.
ITU 31/2016
The Court of Justice ruled that Germany could not deny VAT exemption for the transfer of a vehicle from Germany to Spain by a taxpayer simply because the taxpayer failed to include a VAT number on the invoice, as long as the substantive requirements for exemption were met. The failure to comply with this formal requirement should not prevent exemption from being available, unless tax evasion was suspected. The German law preventing exemption due to missing a VAT number on the invoice violated the purpose of the VAT Directive.
Additionally, the Upper Tribunal affirmed that for VAT groups in the UK, the representative member of the group is entitled to receive any VAT refunds, even if another group member made the supplies and initially overpaid VAT. Individual group members cannot claim refund
Case alert Aspiro SA - Court of Justice
Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL), an international organization that provides assurance, tax, and advisory services. However, GTIL and each of its member firms (including Grant Thornton UK LLP) are separate legal entities - they are not a worldwide partnership and do not have agency relationships where one firm is liable for another's acts or omissions. Grant Thornton UK LLP published this disclaimer to clarify its independent legal status within the broader Grant Thornton organization.
Indirect Tax Update 10 May 2016
This weeks ITU looks at the VAT rules changes for advertising. The basic VAT place of supply rules – the rules that determine where a supply of goods or services takes place – sometimes lead to an outcome which results in supplies not being taxed at all. As an example, the place of supply of advertising services is currently where the customer belongs. If this is not within the EU, then no EU VAT is charged by an EU supplier even though the advertisement in question may be targeted at EU consumers.
HMRC has begun a consultation process which may lead to the imposition of a 'use and enjoyment' rule which, it hopes, will ensure that, in such circumstances, the place of supply will be determined by reference to where the service is targeted and consumed rather than simply where the customer is established.
UK: HMRC implements import anti-fraud campaign
1) HMRC estimates it loses £1.5 billion per year to import VAT fraud such as undervaluation of goods, misclassification of goods, and goods entering the UK but not being exported to another EU country as intended.
2) HMRC is considering shifting liability for this fraud to UK companies that unintentionally facilitate the fraud by providing online trading platforms for the goods.
3) Companies that operate online trading platforms are advised to implement robust due diligence procedures to verify third-party sellers to avoid potential future liability for unpaid import taxes and duties.
ITU 25/2016
This document summarizes three indirect tax cases:
1) The Court of Justice ruled that imposing VAT on legal fees in Belgium did not violate rights to an effective remedy or equality, as the VAT amount was not large enough to prevent access to justice.
2) The Court also ruled that using helicopters for flight training in Germany was not a "commercial use" and was therefore eligible for temporary import tax relief.
3) UK's Upper Tribunal dismissed an HMRC appeal and ruled that a rugby club's sports pavilion qualified for VAT zero-rating as a "village hall" despite being run only by the club.
Case alert Finmeccanica Global Services SpA - Court of Appeal
This document summarizes a court case regarding an Italian company, Finmeccanica Global Services SpA, that incurred costs in the UK and sought to reclaim VAT from the UK. The court ruled that Finmeccanica had made supplies in the UK by invoicing costs to other group companies for construction and operation of an enclosure at an air show. As making supplies in the country where VAT is claimed is not allowed, Finmeccanica was not entitled to the VAT refund. The court determined the essential service was making the air show event possible at that location and time, not advertising as Finmeccanica had argued.
Case Alert University of Huddersfield - Court of Appeal
The document summarizes a court case involving the University of Huddersfield and a VAT planning scheme. The Court of Appeal found that the university's scheme, which established a trust and construction company in order to claim VAT on refurbishment of a building for exempt educational use, constituted an abuse of law under EU principles. While such arrangements were once common, the emerging principles of EU law, including avoiding abuse of law, led HMRC to challenge artificial schemes that provide unwarranted tax advantages contrary to the purpose of VAT directives.
Case alert - Zipvit Ltd
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
Case alert - Heating and Plumbing Supplies Ltd
The document summarizes a tax tribunal case regarding a company that incurred professional fees during a management buyout. The tribunal ruled that as the buyout company and target formed a VAT group, they must be treated as a single taxable entity rather than in isolation. As the VAT group only made taxable supplies, it was entitled to reclaim all input VAT on the professional fees, even though the buyout company alone had no economic activity. The tribunal dismissed the tax authority's view that input VAT recovery should be denied if not claimable by the buyout company separately.
Indirect Tax Update 21/2014
The Court of Appeal ruled that HMRC has the power to offset a previous overclaim of input tax against an overpayment of output tax, even if the normal time limits would bar it. The case involved Birmingham Hippodrome Theatre, which had incorrectly accounted for and paid output tax on exempt box office receipts between 2000-2001. It also claimed input tax on refurbishment works. The Court ruled that HMRC could offset the input tax claimed in error against the theatre's claim for repayment of overpaid output tax, as both errors stemmed from the same original mistake regarding the VAT treatment of box office receipts. This outcome prevents unjust enrichment of the theatre by putting it in the position it would have been in had VAT
ITU 08/2017
The Supreme Court referred the VWFS case to the European Court of Justice to determine if VAT incurred on overheads can be apportioned between taxable and exempt supplies under EU law. The Advocate General issued opinions in two other cases. In the first case, the AG found that importers may be entitled to duty refunds going back three years if goods were later found faulty. In the second case, the AG disagreed with a previous opinion and found that banks and insurers could form cost sharing groups for VAT purposes.
Vat Alert - Distance Selling
This document summarizes a change in HMRC policy regarding the place of supply for VAT purposes of delivered goods sold across borders within the European Union. Specifically, HMRC has adopted an interpretation that the supplier is considered to be delivering the goods if they arrange transportation through a connected or third party, are involved in payment for delivery, or promote transportation services. This change means businesses must review their VAT arrangements for distance sales to other EU member states.
ITU 11/2016
The document summarizes three cases from the First-tier Tax Tribunal and Upper Tribunal:
1) The First-tier Tribunal upheld a £59,000 civil evasion penalty against a fish importer for failing to declare imports from Norway and avoiding £300,000 in customs duties. The Tribunal found the failure was deliberate and dishonest.
2) The First-tier Tribunal upheld a 60% civil evasion penalty against a taxpayer who claimed £34,000 in input VAT but provided no records to substantiate the claims during an HMRC inquiry.
3) The Upper Tribunal dismissed HMRC's appeal involving a Scottish farmer who purchased farm subsidy entitlement units. The Tribunal found the units were purchased for business purposes,
Indirect Tax Update 40/2014
The Upper Tribunal upheld the First-tier Tribunal's decision that the taxpayer failed to demonstrate that paying the disputed tax would cause hardship. As a result, the taxpayer must either pay the tax or withdraw its appeal. This case concerned VAT payments on mobile phones in 2006. HMRC claimed the phone model was not actually available then and assessed the taxpayer to recover the VAT. After years of litigation over hardship appeal rights, the Upper Tribunal dismissed all of the taxpayer's arguments, agreeing with the First-tier Tribunal's original decision. The taxpayer may now either pay the tax or withdraw its appeal.
ITU 10/2016
The document summarizes two key developments from the past week:
1) A Court of Justice ruling found that claims handling services provided to an insurer are not exempt from VAT as insurance transactions or related services. UK law will need to change and businesses providing these services should review their VAT position.
2) The UK budget announced new powers for HMRC to make online marketplaces jointly liable for VAT debts of overseas sellers on their platforms. This aims to reduce the estimated £365 million annual VAT loss from non-compliant foreign traders. Online portals will need to strengthen due diligence of sellers.
What's hot (20)
UK: VAT use and enjoyment on advertising services?
UK: VAT use and enjoyment on advertising services?
Case alert Finmeccanica Global Services SpA - Court of Appeal
Case alert Finmeccanica Global Services SpA - Court of Appeal
Case Alert University of Huddersfield - Court of Appeal
Case Alert University of Huddersfield - Court of Appeal
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Happy moments 2n b
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The majority of survey respondents (71%) are unfamiliar with or in the education phase of cloud computing, while only 11% have plans to implement cloud initiatives in 2010. Many software companies are rapidly expanding their portfolio of cloud offerings across infrastructure, platform, and software services. Transitioning to a software-as-a-service (SaaS) model provides benefits like reduced costs, faster implementation, scalability, and security, but established software companies face challenges adapting their business models, partnerships, and operations to the SaaS approach. Recurring revenue from SaaS contracts is a key driver of higher business valuations for software companies.
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Mobiangle is a leading mobile development outsourcing company with deep industry knowledge and a proven track record of delivering business value to clients. They offer end-to-end mobile strategy, design, and development services. Mobiangle has offices globally and focuses on building high quality, user-centered applications across all mobile platforms.
Mangas viii valida
This document contains a series of letters, numbers, and symbols with no discernible meaning. There are no identifiable words, sentences, or concepts that could be summarized in 3 sentences or less. The document appears to be random characters without any essential information that could be extracted and summarized.
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Este documento discute a importância do ensino da língua inglesa na educação brasileira. Apresenta justificativas para o crescente uso do inglês devido à globalização e tecnologia. Seu objetivo é proporcionar uma oficina de inglês para professores a fim de destacar o papel dessa língua na sociedade e educação.
Tier2 Technical Contracting
Mobiangle is a technical contracting and recruitment services firm that provides high-quality staffing solutions across various industries and technologies, including information technology, engineering, and mobile development. They utilize a metrics-based and transparent recruitment process along with applicant tracking software to efficiently connect qualified candidates to client opportunities. The company has locations in Johannesburg, New Delhi, and Las Vegas to serve a global base of clients.
Nano-Clear Protects Oxidized Fiberglass Rescue Boat
Nano-Clear Industrial coating was applied to an oxidized rescue boat for the Department of the Navy. Nano-Clear penetrated and fortifies the oxidized fiberglass protecting is from salt water and UV. The Nano-Clear also enhanced the color of the fiberglass. The application of Nano-Clear is less expensive than re-applying gel coat or re-painting.
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Similar to Case Alert Wakefield College - Upper Tribunal
ITU 03/2016
The Upper Tribunal issued three decisions this week:
1. It allowed HMRC's appeal in the Wakefield College case, overturning the earlier decision that a new building qualified for VAT zero-rating. The Tribunal found that where students paid full fees, the education provided was a business activity.
2. It allowed Find My Past Ltd's appeal, finding that credits purchased were not pre-payments for future access but "face-value vouchers" so VAT was only due when redeemed, allowing refunds for unused credits.
3. The Court of Justice ruled that Belgium could view a for-profit organization providing assisted housing for the elderly as "charitable" and exempt its welfare services from VAT based on
Case Alert - Wakefield College - Court of Appeal
The Court of Appeal unanimously dismissed Wakefield College's appeal of a decision that denied VAT zero-rating for the construction of a new college building. While most of the College's students either paid no or subsidized fees, the Court found this still constituted consideration for education and made it an economic activity, precluding VAT zero-rating. The Court distinguished consideration under VAT Directive Article 2 from remuneration under Article 9, finding the College's activities were remunerated and economic in nature. This clarified that satisfying Article 2's consideration test does not automatically deem an activity non-economic under Article 9. The College's attempt to analogize to a prior legal aid case was rejected.
ITU / 092017
The document summarizes three court rulings:
1. The Court of Justice overturned the Advocate General's opinion in the Brockenhurst College VAT case, ruling that supplies made by the college to third parties could be considered closely related to the principal education supply.
2. The Supreme Court unanimously ruled against Investment Trust Companies in their restitution claim against HMRC for VAT wrongly paid, finding they had no direct relationship with HMRC.
3. The Advocate General issued an opinion in an input VAT recovery case, arguing that a Bulgarian developer could not reclaim VAT on works to upgrade a water pumping station as there was no link to its taxable business activities.
Case Alert Financial & Business Training Ltd - Court of Appeal
Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and its member firms are separate legal entities that provide assurance, tax, and advisory services. Grant Thornton UK LLP is regulated in the UK, but individual member firms are not agents of each other and are not liable for each other's actions. This publication is intended as guidance only and Grant Thornton accepts no responsibility for any loss resulting from reliance on it.
Case Alert Longridge on Thames
This document summarizes a court case involving a charity called Longridge on the Thames that provides water sport activities in exchange for fees. The charity claimed VAT zero-rating for the construction of a new building, arguing the building would not be used for business purposes. However, HMRC viewed the activity of providing water sports for fees as an economic activity, meaning the building did not qualify for zero-rating. Both the First-tier Tax Tribunal and Upper Tribunal sided with the charity, but the Court of Appeal overturned this, agreeing with HMRC that the charity's activity amounted to an economic activity under VAT law. As a result, the construction of the new building did not qualify for zero-rating.
Case Alert - University of Cambridge
The document summarizes a court case between the University of Cambridge and HMRC regarding whether the University can reclaim VAT incurred on fund management fees. The University operates an endowment fund managed by a third party, which charges fees. The University argues these fees are overheads that can be partially reclaimed under its partial exemption special method. HMRC argues the fees are consumed by investment activities and not reclaimable. Lower courts sided with the University, but the Court of Appeal referred the case to the European Court of Justice for guidance on interpreting relevant VAT directives and prior cases.
Case Alert - Metropolitan International Schools - First-tier Tax Tribunal
This document summarizes a tax case involving Metropolitan International Schools (MIS) that was decided by the First-tier Tax Tribunal (FTT). The FTT ruled that MIS made a single supply of printed course materials rather than a supply of education. As a result, MIS's supplies were subject to VAT at the zero-rate rather than the standard rate argued by HMRC. The decision was an important win for MIS but may still be appealed by HMRC if they believe the FTT applied the wrong legal tests or factual findings.
ITU 06/2018
The document provides summaries of three recent court rulings related to indirect tax:
1) The Advocate General issued an opinion in Volkswagen Financial Services v HMRC, finding that vehicle financing arrangements constitute a single taxable supply of a vehicle, allowing the company to recover input tax on overheads.
2) The Court of Appeal ruled against Wakefield College in its claim that education provided to students paying partial fees was not an economic activity for VAT purposes, as the partial fees constitute consideration.
3) The Upper Tribunal dismissed HMRC's argument that payments by Marriott Rewards to redeeming hotels were third party consideration, but also ruled that neither Marriott nor Whitbread established the UK or US
ITU 06/2018
The document provides summaries of three recent court rulings related to indirect tax:
1) The Advocate General issued an opinion in Volkswagen Financial Services v HMRC, finding that vehicle financing arrangements constitute a single taxable supply of a vehicle, entitling the company to full VAT recovery on overheads. This contradicts the UK's view of separate taxable and exempt supplies.
2) The Court of Appeal ruled against Wakefield College in its claim that education provided to students paying partial fees due to financial hardship was not an "economic activity" subject to VAT, as the partial fees constitute remuneration rather than consideration.
3) The Upper Tribunal dismissed HMRC's argument that payments by Marriott
ITU 03/2017
HMRC responded to concerns raised in its Making Tax Digital consultation. It will allow continued spreadsheet use, quarterly reporting for some businesses, and free software. Charities will be exempt and partnerships above £10M have a deferred start until 2020. Commentators say HMRC is listening to stakeholders but businesses should still prepare for changes.
A European court case determined that a holding company cannot reclaim VAT without making charges for management services, as there was no economic activity.
Another DIY builder's VAT refund claim was rejected because planning permission did not allow for separate dwelling use, a legal requirement.
UK Case Alert: HMRC v Brockenhurst College
Under EU law, provided that certain conditions are met, the supply of education is exempt from VAT. In addition, the supply of goods or of services closely related thereto are also exempt from VAT.
The question to resolve in this case is whether supplies of services (restaurant meals and performances) provided by the College to members of the public for consideration is a 'closely related' supply which should also benefit from the exemption.
In both cases, the students gain practical experience as part of their courses. HMRC considers that the supplies are separate from the education and are taxable at the standard rate of VAT.
The Court of Justice will deliver its judgement in due course.
Case Alert Brockenhurst College
Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL), which provides assurance, tax, and advisory services through independent member firms around the world. While GTIL establishes quality standards and is responsible for strategy, each member firm operates as a separate legal entity and is not liable for other member firms' actions or omissions. This publication is intended as guidance only and Grant Thornton UK LLP accepts no liability for any actions taken based on its contents.
Indirect Tax Update for week ending 25 April 2014
Highlights this week include a First-tier Tribunal decision on the issue of whether a £71,000 default surcharge imposed by HMRC was disproportionate. Following an earlier consultation, HMRC also makes an announcement that a proposal to extend VAT exemption to supplies of higher education by 'for-profit' organisations is to be shelved.
ITU 22/2016
This document summarizes three indirect tax cases:
1) ING Intermediate Holdings Ltd lost its £6 million input VAT claim after the Upper Tribunal ruled that ING provided banking services to its customers for consideration, making the services exempt from VAT recovery.
2) The Court of Appeal ruled against ELS Group in claiming retrospective use of the staff-hire concession, agreeing with HMRC that the concession requires an election at the time.
3) The First-Tier Tax Tribunal ruled that a fulfillment house could not reclaim over £500,000 in import VAT because the imported goods did not belong to the fulfillment house but to the overseas suppliers.
ITU 16/2016
Three UK court cases were summarized:
1) The UK Supreme Court ruled in Airtours v HMRC that a company was not entitled to deduct VAT payments on professional services supplied to banks, not the company, even though the company paid the fees.
2) The Court of Appeal dismissed an appeal by the University of Huddersfield relating to a VAT planning arrangement for building works, finding the arrangement was an abusive tax scheme.
3) The Court of Justice ruled that bus fares charged by a local authority were outside the scope of VAT and not an economic activity, since only 3% of costs were covered by parental contributions.
ITU 04/2017
This document summarizes three VAT tribunal cases:
1) A university challenged HMRC's view that it owed VAT on fees paid to overseas agents who help recruit foreign students. The tribunal mostly agreed with HMRC, except that fees before 2010 were not subject to VAT.
2) Marriott and Whitbread's appeals about a loyalty points scheme were dismissed, with the tribunal finding the nature of supplies was different than claimed.
3) A freight agent was denied VAT repayment on imports when the customer went insolvent and conditions of an extra-statutory concession were not met.
VAT Update - Brockenhurst College
HMRC lose this high profile case at the latest stage. Of interest to those in the education sector and charities.
ITU 05/2018
HMRC revises its policy in relation to cost sharing groups following judgments from the Court of Justice. Specifically, HMRC will no longer allow the cost sharing exemption for financial and insurance businesses as the Court of Justice ruled the exemption is not available to these sectors. HMRC will provide a two month transition period for affected businesses to regularize their VAT positions. Additionally, the Court of Appeal case involves determining whether VAT on fund management services provided to the University of Cambridge's endowment fund can be attributed to the overall activities of the University.
ITU 26/2016
The document summarizes recent developments in UK indirect tax law from court rulings and HMRC announcements:
1) The Court of Appeal ruled that a charity's activities of providing water sports in return for fees were "economic activities" subject to VAT, overturning earlier rulings. This means the charity's building did not qualify for VAT exemption.
2) The Upper Tribunal referred the DPAS VAT case on dental payment plans to the EU Court, seeking clarification on whether such plans constitute taxable "debt collection".
3) HMRC extended for another year, until December 2017, its transitional policy allowing UK pension schemes to reclaim 70% of input VAT costs. It is still seeking input on reconciling
Case alert - St Andrews College Bradfield - Upper Tribunal
The Upper Tribunal has dismissed the college's appeal on whether two subsidiaries were 'eligible' bodies for VAT purposes
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Case Alert Financial & Business Training Ltd - Court of Appeal
Case Alert Financial & Business Training Ltd - Court of Appeal
Case Alert - Metropolitan International Schools - First-tier Tax Tribunal
Case Alert - Metropolitan International Schools - First-tier Tax Tribunal
Case alert - St Andrews College Bradfield - Upper Tribunal
Case alert - St Andrews College Bradfield - Upper Tribunal
More from Graham Brearley
ITU 10/2018
The document summarizes three recent court cases related to indirect tax:
1) The Court of Justice of the European Union ruled that a holding company letting property to its subsidiary constituted involvement in management, allowing the holding company to reclaim input tax on acquisition costs.
2) The UK Supreme Court ruled that a company that left a VAT group was not acting as an agent of the group when it later claimed a VAT refund, and thus the representative member of the VAT group was not entitled to the refund.
3) The UK Court of Session ruled that the supply of temporary modular classrooms was a taxable service, not a supply of an interest in land that would be VAT exempt, as the company had no interest in
ITU 07/2018
The document summarizes several indirect tax cases from the UK.
The first case discusses an Advocate General's opinion in a case referred to the Court of Justice by the Irish Supreme Court involving Ryanair's attempt to reclaim VAT fees from an unsuccessful takeover bid of Aer Lingus. The Advocate General believes Ryanair is entitled to reclaim the VAT.
The second case discusses a First-Tier Tax Tribunal case involving Marks & Spencer's "Dine In for £10 with free wine" promotion. The tribunal agreed with HMRC that VAT was due on the wine as customers paid for a package including the wine.
The third case discusses a First-Tier Tax Tribunal case involving a Guern
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
Whether services can be zero-rated when supplied to a main contractor. Whether planning restrictions on occupation prevents zero-rating
ITU 08/2018
The document summarizes two recent indirect tax cases in the UK:
1) HMRC v Summit Electrical Installations Ltd - The Upper Tribunal dismissed HMRC's appeal and agreed with the First-tier Tax Tribunal's decision that the taxpayer could zero-rate its electrical installation services for a new student accommodation building, as the building qualified as a dwelling under VAT law.
2) Bratt Autoservices Ltd - The Court of Appeal dismissed the taxpayer's appeal and agreed with the Upper Tribunal that the taxpayer's 2009 VAT repayment claim was not valid because it did not allocate amounts to the taxpayer's prescribed accounting periods as required by VAT law.
Vat Alert: Reverse Charge on Construction Services
The document discusses HMRC's proposal to introduce a 'reverse charge mechanism' for VAT on construction services to combat VAT fraud in the industry. Under the new rules, the customer would be responsible for accounting for VAT on supplies received rather than the supplier. This would prevent suppliers from charging VAT but not paying it over to HMRC. The draft legislation provides a wide definition of construction services that would be subject to the reverse charge, including building works, repairs, and various site works. While measures to tackle fraud are necessary, commentators note that the broad scope means nearly all subcontracted construction services would be affected, with wider impacts than originally planned.
ITU 09/2018
The document summarizes three recent indirect tax cases:
1) Wetheralds Ltd - The Upper Tribunal ruled that a thermally efficient roofing system was a supply of a new roof rather than insulation materials, and was thus subject to the standard VAT rate of 20% rather than the reduced 5% rate.
2) Abbotsley Ltd - The Upper Tribunal confirmed that affiliation fees paid by proprietary golf clubs to golf associations were exempt from VAT as being essential to sport.
3) Hutchison 3G UK Ltd - The First-tier Tax Tribunal dismissed H3G's argument that the tax point for mobile phone contracts should be when services are used rather than when monthly payments are received.
Vat Alert - Cost Sharing Groups
HMRC has announced changes to the UK's VAT rules relating to cost sharing groups (CSGs) following recent judgments from the Court of Justice of the European Union. The changes mean the VAT exemption for CSGs will now only apply to entities providing certain public interest services listed in the VAT Directive, such as postal, education, and health services. Banking and insurance entities are no longer eligible. HMRC will also restrict CSG membership to UK entities and require recharges to members be made only at cost. Entities correctly applying previous guidance have until the end of May 2018 to comply with the new rules.
Case Alert - VWFS - Advocate General's opinion
This document summarizes an Advocate General's opinion in a case between HMRC and Volkswagen Financial Services (UK) Ltd regarding VAT treatment of hire purchase agreements. The Advocate General opined that input VAT incurred by VWFS on overheads cannot be recovered as it relates to the exempt supply of credit. However, the UK's treatment of hire purchase transactions as two separate supplies is incorrect under EU law - they should be treated as a single taxable supply of a car with an incidental credit element. If the court agrees, it would entitle VWFS to recover all input VAT but require accounting for output tax on interest charged. The opinion creates uncertainty for finance industry VAT treatment going forward.
Case alert - Ryanair - Advocate General's opinion
This summary provides the key details from the document in 3 sentences:
The document discusses an Advocate General's opinion in a case referred to the Court of Justice of the European Union concerning whether the Irish airline Ryanair was entitled to reclaim VAT incurred on professional fees relating to its failed 2006 bid to acquire rival airline Aer Lingus. The Advocate General considers that Ryanair is entitled to reclaim the input VAT, both because there was an intention to provide management services and because the cost of acquiring Aer Lingus shares was to directly and permanently extend Ryanair's taxable air passenger transport services business. This is the case even though the takeover bid was ultimately blocked and the management services were not provided.
Case Alert - Marks & Spencer
This document discusses a case regarding a promotional offer by Marks & Spencer (M&S) where customers could purchase three food items for £10 and receive a free bottle of wine. HMRC considered that the deal was actually for four items for £10 and that VAT should be paid on the portion of the £10 attributable to the wine. The First-tier Tax Tribunal agreed with HMRC's view, finding that the economic reality was a package deal rather than items plus a free gift. It determined that the £10 payment should be apportioned with VAT paid on the wine portion. The Tribunal emphasized examining the commercial substance of promotions for accurate VAT determination.
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
The Upper Tribunal issued a judgment regarding the VAT treatment of payments made through Marriott's customer loyalty rewards scheme. The Tribunal determined that payments from Marriott Rewards LLC to participating hotels were consideration for redemption services provided to MRL, rather than third-party consideration for accommodation supplied to customers. It also found that these redemption services constituted a supply of services related to land in the UK, rather than advertising services, meaning UK VAT was due. Both MRL and Whitbread's appeals were dismissed.
ITU 04/2018
The document provides updates on recent indirect tax cases from the UK courts, CJEU, and Brexit developments.
The CJEU issued an opinion in DPAS Ltd, finding that DPAS's service of collecting payments from patients and transferring them to dentists was not exempt from VAT as a payment transaction, but rather a taxable debt collection service, even though the contracts were amended to provide the service to patients rather than dentists.
The CJEU also ruled in a case from Slovakia that when a supplier issues supplementary VAT invoices to correct an underpayment of VAT, the time limit for claiming VAT refunds should run from the date of the supplementary invoices, not the original supplies.
Finally,
Case Alert DPAS Ltd - Advocate General's opinion
Whether collection of direct debits constitutes a transaction concerning payments or transfers and exempt from VAT - AG considers not
Brexit Alert
This document summarizes an agreement reached between the UK and EU to establish a transitional period after Brexit. Key points include:
- The UK will leave the EU in March 2019 but remain in the single market and customs union until December 2020.
- Goods moving between the UK and EU during this period will be treated as intra-EU trade in regards to customs and VAT.
- The agreement provides businesses more certainty and time to prepare for changes taking effect after the transitional period ends. However, the deal still requires approval from all EU member states.
Case Alert: Kreuzmayr CJEU Judgment
CJEU issues judgment on place of supply issue relating to two supplies but a single transportation - Also deals with recovery of incorrectly charged input VAT
ITU 03/2018
The document summarizes three indirect tax cases:
1) A CJEU case regarding whether payments for credits on an online auction site constitute a preliminary transaction or payment for goods. The Advocate General found credits enabled participation and were a taxable supply of services.
2) The European Commission issued proceedings against Cyprus, Greece, Malta, and the UK for alleged non-compliance with EU VAT law regarding yacht VAT schemes and financial derivatives.
3) A UK tax tribunal case examined whether a property transfer qualified for VAT exemption as a transfer of a going concern. The tribunal found conditions were met for one property but not three others.
Case alert - Boehringer Ingleheim Pharma CJEU Judgment
This document summarizes a court case from the Court of Justice of the European Union regarding the calculation of value-added tax (VAT) on supplies of pharmaceutical products where the initial price is later reduced. The taxpayer, Boehringer Ingelheim Pharma GmbH & Co KG, manufactures and supplies medications to pharmacies in Germany via wholesalers. For supplies covered by public health insurance, Boehringer reimbursed discounts provided to insurance funds, and the tax authority allowed Boehringer to reduce the taxable value. However, for private insurance, similar reimbursements were not allowed as a reduction. The Court ruled that the principle of equal treatment requires both arrangements be treated the same for VAT - where the final
ITU 02/2018
The document provides summaries of three court cases related to indirect tax:
1) The CJEU ruled that a Slovenian taxpayer must adjust its input tax deduction after a court ordered the taxpayer to pay only 44% of debts owed to creditors.
2) The CJEU ruled that the compulsory transfer of property from a Polish municipality to the state in exchange for compensation constituted a taxable supply for VAT purposes.
3) The UK Upper Tribunal largely upheld a previous ruling that a UK house builder could not reclaim input tax on "white goods" supplied as part of new home construction, with a minor exception for cooker hoods supplied between 1982-1984.
Indirect Tax Update 01/2018
This document provides summaries of three indirect tax cases:
1) The Kreuzmayr GmbH case denied a taxpayer the right to reclaim VAT that was incorrectly charged by its supplier who later went insolvent. The CJEU ruled that the right to recover VAT only applies to VAT that was correctly charged.
2) In the Hammonds of Knutsford PLC case, the Court of Appeal ruled that failure to make goods available for HMRC inspection, as required by regulations, meant the taxpayer was not entitled to an excise duty drawback. The inspection requirement was deemed a substantive condition.
3) The Hastings Insurance Services Ltd case determined that supplies made by a UK company to a customer in Gibraltar took place
Briefing Paper - EU Commission publishes proposals for VAT changes
The European Commission has announced plans to overhaul the VAT system for intra-community supplies of goods within the EU. The current interim system taxes supplies based on the origin principle, but a new definitive system beginning in 2019 will reverse this and tax supplies based on the destination principle instead. Under the new system, a supply from one country to another will be taxed in the destination country rather than the origin country. The Commission also proposes new rules for certified taxable persons and a "one-stop shop" for suppliers to account for VAT in other member states.
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Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
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Vat Alert: Reverse Charge on Construction Services
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
Case alert - Boehringer Ingleheim Pharma CJEU Judgment
Case alert - Boehringer Ingleheim Pharma CJEU Judgment
Briefing Paper - EU Commission publishes proposals for VAT changes
Briefing Paper - EU Commission publishes proposals for VAT changes
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Accounting Information Systems (AIS).pptx
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
挂科购买【微信号:176555708】【挂科购买(UPenn毕业证书)】【微信号:176555708】《成绩单、外壳、offer、真实留信官方学历认证（永久存档/真实可查）》采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【我们承诺采用的是学校原版纸张（纸质、底色、纹路）我们拥有全套进口原装设备，特殊工艺都是采用不同机器制作，仿真度基本可以达到100%，所有工艺效果都可提前给客户展示，不满意可以根据客户要求进行调整，直到满意为止！】
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信号:176555708】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信号:176555708】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
留信网服务项目：
1、留学生专业人才库服务（留信分析）
2、国（境）学习人员提供就业推荐信服务
3、留学人员区块链存储服务
【关于价格问题（保证一手价格）】
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：客户在留信官方认证查询网站查询到认证通过结果后付款，不成功不收费！
Ending stagnation: How to boost prosperity across Scotland
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
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KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
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Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
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ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
PM pre reads for the product manager framework
For kingfisher airlines, interpret this with product management frameworks and answer the below questions
University of North Carolina at Charlotte degree offer diploma Transcript
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Economic trends from a business point of view (May 2024)
Economic trends from a business point of view (May 2024)Інститут економічних досліджень та політичних консультацій
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
TechnoXander Confirmation of Payee Product Pack 1.pdf
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Dr. Alyce Su Cover Story - China's Investment Leader
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
原版定制【微信:bwp0011】《(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书》【微信:bwp0011】成绩单 、雅思、外壳、留信学历认证永久存档查询，采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信bwp0011】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信bwp0011】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
【关于价格问题（保证一手价格）】
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
Discovering Delhi - India's Cultural Capital.pptx
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
原件一模一样【微信：bwp0011】《(RWTH毕业证书)德国亚琛工业大学毕业证》【微信：bwp0011】学位证，留信认证（真实可查，永久存档）原件一模一样纸张工艺/offer、雅思、外壳等材料/诚信可靠,可直接看成品样本，帮您解决无法毕业带来的各种难题！外壳，原版制作，诚信可靠，可直接看成品样本。行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备。十五年致力于帮助留学生解决难题，包您满意。
本公司拥有海外各大学样板无数，能完美还原。
1:1完美还原海外各大学毕业材料上的工艺：水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠。文字图案浮雕、激光镭射、紫外荧光、温感、复印防伪等防伪工艺。材料咨询办理、认证咨询办理请加学历顾问微bwp0011
【主营项目】
一.毕业证【微bwp0011】成绩单、使馆认证、教育部认证、雅思托福成绩单、学生卡等！
二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
四.办理各国各大学文凭(一对一专业服务,可全程监控跟踪进度)
如果您处于以下几种情况：
◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【微bwp0011】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
◇回国时间很长，忘记办理；
◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
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Case Alert Wakefield College - Upper Tribunal
- 1. © 2016 Grant Thornton UK LLP. All rights reserved. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. grant-thornton.co.uk GRT100456 Summary This is the second hearing of this case at the Upper Tribunal. The construction of a building for a relevant charitable purpose can be zero-rated. The definition of relevant charitable purpose includes the use of a building by a charity otherwise than in the course or furtherance of a business activity. Wakefield College is a charity and claimed zero-rating for the construction of one of its campus buildings. It claimed, following the Commission v Finland case, that its income from fees paid by students or their employers was not consideration for a supply of services. The Upper Tribunal has allowed HMRC's appeal. 22 January 2016 Upper Tribunal The Upper Tribunal has released its second judgment in this appeal having sent the original appeal back to the First-tier Tribunal for a rehearing of the facts. The issue – whether the construction of a building qualifies for zero-rating under UK VAT law – rested in this case on whether the College intended to use the building for a relevant charitable purpose. The First-tier Tribunal concluded (at the second hearing) that, as the fees paid by certain students were set according to various factors, the fees could not (following the CJEU's judgment in Commission v Finland), be regarded as 'consideration' for the supply of education. As such, the income of the College was not derived from the carrying on of an economic activity and, as a result, the use of the particular building was for a relevant charitable purpose. HMRC appealed to the Upper Tribunal. Essentially, the dispute centred around those students aged over 19 where either they, or their employer were expected to contribute to the cost of their courses. HMRC considered that the contribution made in this way was consideration for a supply of education services and should, therefore, be regarded for VAT purposes as income from the operation of a business. The Upper Tribunal confirmed that where students have their fees abated to reflect their personal circumstances, the supplies of education are outside the scope of VAT. However, where the student's personal circumstances do not entitle him to an abated fee, the income should be regarded as consideration and thus business income. This is the case even though the fee charged by the College is below cost. The Tribunal considers that the crucial distinction here is the fact that the student pays the full advertised price and is not entitled to any abatement due to personal circumstances. Comment – Although the Tribunal allowed HMRC's appeal, this is not necessarily a disaster for Colleges. If non-business activities remain above 95% a College should be entitled to claim that it is not acting in the course or furtherance of a business for VAT purposes. In such circumstances, the construction of a building will continue to qualify for zero-rating as a building intended to be used by a charity for non-business purposes. HMRC v Wakefield College Case Alert Contact Stuart Brodie Scotland stuart.brodie@uk.gt.com (0)14 1223 0683 Karen Robb London & South East karen.robb@uk.gt.com (0)20 772 82556