In February 2012 the following VAT decisions were handed down in the UK and the ECJ (some of the First Tier Tribunal decisions were handed down in January 2012 but were only recently published). My research did not disclose any decision of note in New Zealand or Canada.
The most interesting decisions were Aberdeen Sports Village (VAT on financial assistance payments) and David Peters (whether goods not delivered were nevertheless supplied). I have already published my thoughts on these decisions.
- Powa (Jersey) Ltd v HMRC  UKUT 50 – VALUE ADDED TAX – input tax – MTIC and contra-trading – whether connection to fraudulent trading as condition of denial of right to deduct input tax requires privity of contract with fraudulent trader – test in Kittel and Recolta Recycling – whether English mistranslation of French text of the judgment – whether to refer question to ECJ – application of Court of Appeal judgment in Mobilx
First Tier Tribunal
- Aberdeen Sports Village Ltd v Revenue & Customs  UKFTT 80 – SUPPLY: 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. For my analysis of the decision see here.
- Arkeley Ltd (in liquidiation) v Revenue & Customs  UKFTT 126 – Exports – pharmaceutical goods exported – evidence of export
- Davison v Revenue & Customs  UKFTT 89 – VAT assessment – cars imported from Germany into UK – German supplier incorrectly charged VAT – Importer liable for UK VAT – unable to recover German VAT – insolvency of German supplier – double taxation
- David Peters Ltd v Revenue & Customs  UKFTT 124 – VAT – input tax – taxpayer paid for goods which were not delivered – whether supply – whether taxpayer entitled to credit for input tax; for my analysis of this decision see here.
- Eyin v The Commissioners of Revenue & Customs  UKFTT 106 – VATA 1994 ss 56, 57, 63 & 73 – fuel scale charges – misdeclaration penalty – underdeclaration of standard-rated outputs – unreceipted and unrecorded cash purchases
- Jones v Revenue & Customs  UKFTT 108 – VAT -Section 35 VAT Act 1994 – the DIY Refund Scheme- HMRC refused the claim by the Appellants for a VAT refund on the grounds that at the time the development took place the correct statutory planning permission was not in place – Appellants had done all that was required of them but the planning permission produced by the council was inadequate
- Shop Direct Group & Ors v Revenue & Customs  UKFTT 127 – Corporation tax – receipts of payments in respect of overpaid VAT and statutory interest – whether VAT repayments trading receipts
- Spearmint Blue Ltd v Revenue & Customs  UKFTT 103 – VAT – MTIC fraud – contra trading – fraud established both in dirty chain leading up to contra trader and also by contra trader – insufficient evidence to show that Appellant knew of either fraud, but held that it should have known
- The Harewood Estate v Revenue & Customs  UKFTT 93 – Value Added Tax – deductibility of input tax – stabilisation works to Harewood Castle – whether directly attributable to taxable supplies or residual – appeal allowed
European Court of Justice
- Eon Aset Menidjmunt  EUECJ C-118/1 – VAT – Directive 2006/112/EC – Articles 168 and 176 – Right of deduction – Condition relating to use of goods and services for the purposes of taxed transactions – Origin of the right to deduct – Motor vehicle leasing contract – Financial leasing contract – Vehicle used by employer to transport free of charge an employee between his home and his workplace
- Van Laarhoven  EUECJ C-594/10 – Sixth VAT Directive – Right to deduct input tax – Limitation – Use of goods forming part of the assets of a business for the private use of the taxable person – Fiscal treatment of private use of goods that are assets of the business
- Varzim Sol  EUECJ C-25/11 – Sixth VAT Directive – Deduction of input tax – Article 17(2) and (5) and Article 19 – ‘Subsidies’ used for the purchase of goods and services – Restriction of the right to deduct