The Tribunal has heard yet another case where the taxpayer provided a ‘basket’ of supplies, and had to unpick the arrangements to determine exactly what was being supplied. Once that decision was reached, the matter of the VAT liability could then be decided.
Les Howard's vatadvice.org
This blog is about VAT. Rather than trying to provide totally comprehensive explanations of complex VAT issues, this blog seeks to be thought-provoking on all things VAT!
The First Tier Tribunal heard an Applications Hearing in the case of Pertemps Ltd. The substantive Appeal concerns the correct tax treatment of Salary Sacrifice Scheme, affecting both Direct and Indirect Taxes. The Taxpayer sought to amend his Grounds of Appeal.
The question of whether the supplies of an insurance intermediary are exempt or taxable is a ‘hardy perennial.’ The scope and complexity of the insurance sector, with numerous related service providers, seems to guarantee that this question will never really be settled.
Zero rating for cross-border removals of goods depends on adequate evidence of removal. One case concerned around £222,000 of VAT on supplies of coal from Northern Ireland to the Republic of Ireland.
I have already posted a blog item about third party payments (http://www.accountingweb.co.uk/blog-post/can-i-claim-input-tax-when-i-ve-paid-someone-else), and the principle has
Three cases were heard at the First Tier Tribunal in recent months which concerned penalties issued under FA 2007, Sch 24 where a D-I-Y Self-Build claim was incorrect.
The ‘proportionality’ argument has been raised in a number of Tax Tribunal cases. The most recent Upper Tier decision was that of Trinity Mirror plc. It followed on from previous cases of Enersys Holdings UK Ltd and Total Technology (Engineering) Ltd.
Commentators agree that VAT cannot be considered a simple tax. (The phrase comes from the Budget Speech of Sir Anthony Barber in 1972.) Errors are frequent. The consequences in lost VAT, penalties, and administrative time, can be significant.
The most recent edition of PN 708 (para 14.7.4) somewhat restricted the definition of “village hall.” The effect is that it is harder to secure zero rating for the construction of such a building.
One important principle of VAT is that input tax is deductible only by the person to whom the supply is made.