International cases update – January 2012

The following GST/VAT cases were handed down in January 2012.  From my research there were no cases handed down in New Zealand or Canada.

United Kingdom

High Court

  • Royal Bank of Scotland v Revenue and Customs [2012] EWHC 9 – decision of Tribunal appealed from [2008] UKVAT V20586 – sale of going concern, whether ongoing commission payments consideration for sale of going concern, effect of novation of contracts, whether commission payments exempt as payments for “related services performed by insurance brokers and insurance agents” – appeal dismissed

First Tier Tribunal

  • Ist Contact Ltd v Revenue & Customs [2012] UKFTT 84 – recovery of input tax on exempt supplies pursuant to VATA s.26(2)(c) – Exempt supplies under VATA Schedule 9, Group 5, item 1 (“The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money”) – Supply of foreign exchange services (FOREX) to persons, principally from Australia, New Zealand and South Africa, who are in the United Kingdom on a “working holiday” or “overseas experience” – whether services “supplied to a person who belongs outside the member States”
  • Aberdeen Sports Village Ltd v Revenue & Customs [2012] UKFTT 80 – Whether payment was a consideration for a supply of services or donation; amount of consideration; link between payer and payee; appeal against decision that services were supplied; Appeal refused
  • Bunning (t/a Stafford Land Rover) v Revenue & Customs [2012] UKFTT 32 – zero-rating of the supply of a qualifying motor vehicle to a handicapped person who usually uses a wheelchair – whether two vehicles supplied were each (a) supplied to a handicapped person who usually uses a wheelchair, and (b) a qualifying motor vehicle – held in both cases both conditions were fulfilled and the supplies fell to be zero-rated – appeal allowed
  • Bromley Emergency Training and Development Ltd v Revenue & Customs [2012] UKFT 30 – Registration – Supply of services – Training courses – Advance payments – Threshold for registration – Whether time of supply rules apply when deciding when threshold exceeded
  • King v Revenue & Customs [2012] UKFTT 64 – claim for input tax credits for purchase of motor vehicles – whether used in enterprise
  • Reddrock Ltd v Revenue & Customs [2012] UKFTT 46 – Input tax deduction claimed – supplies in respect of which input tax was claimed challenged by HMRC as not having taken place and the related 54 invoices as having been manufactured – burden of proof on Appellant to show that invoices were valid – Appellant failing to discharge that burden – Appeal dismissed

European Court of Justice

  • Minister Finansow v Kraft Foods Polska (Taxation) [2012] EUECJ C-588/10 – Taxation – VAT – Directive 2006/112/EC – Article 90(1) – Price reduced after the supply has taken place – National legislation which makes the reduction of the taxable amount contingent on the supplier of the goods or services possessing acknowledgment of receipt of a correcting invoice by the purchaser of the goods or services – Principle of VAT neutrality – Principle of proportionality
  • ADV Allround v Finanzamt Hamburg – Bergedorf (VAT) [2012] EUECJ C-218/10 – VAT – Sixth Directive – Articles 9, 17 and 18 – Determination of the place where services are supplied – Concept of ‘supply of staff’ – Self-employed persons – Need to ensure that a provision of services is assessed identically in relation to the provider and in relation to the recipient

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