A tricky challenge in the tax world is when different tribunal decisions seem to contradict each other.
For example, we recently had different views from the courts about the VAT treatment of optional extras in two separate cases. The first concerned the hiring of a child’s car seat at the same time as a car, and in the second case the question was whether an extra payment for the hire of children’s skates was part of a single standard rated supply of admission to the rink.
The facts seemed similar in both cases and the appeals system eventually produced the same outcomes: the seats and skates were both subject to VAT in their own right as optional extras. That was a relief.
The UT ruled in favour of HMRC, confirming that it was not a subject that was “ordinarily taught in a school or university.” This overruled an earlier decision of the FTT that the fees were exempt (see Taxpayer dances to surprise VAT victory).
Why am I pleased with this outcome?
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