In June 2012 the following decisions dealing with GST/VAT were handed down in the UK, Canada and the ECJ.
An interesting decision is The People’s Dispensary for Sick Animals (PDSA) v Revenue & Customs  UKFTT 362 where the Tribunal looked at whether the taxpayer was entitled to input tax credits for veterinary services acquired in the course of operating a Pet Aid scheme whereby veterinary services were provided at no cost to qualifying members. While the Tribunal found in favour of the Revenue, in my view there are good arguments that the matter would be decided differently in Australia and the case provides a useful example of the differences between the VAT legislation in the UK and the GST in Australia. My analysis of the decision can be accessed here.
Another interesting decision is Global Cash Access (Canada) Inc v The Queen 2012 TCC 173 where the Tax Court of Canada considered the question of characterising a bundle of supplies in the context where at least one of those supplies was an input taxed financial supply. My previous post on this decision can be accessed here.
First Tier Tribunal
- Atchem Ltd v Revenue & Customs  UKFTT 380 – VAT – property – supply of going concern – belated notification – whether appellant decided to opt to tax on or before completion – held no – appeal dismissed
- Beds Beds Beds London v Revenue & Customs [2012[ UKFTT 353 – VAT – claim for repayment of overpaid VAT – claim made more than four years after end of accounting period in which assessment made – whether claim valid – no – section 80(1A) and (4) VAT Act 1994 – appeal dismissed
- Bloomsbury Wealth Management LLP v Revenue & Customs  UKFTT 379 – VAT – EXEMPT SUPPLIES – finance – whether appellant supplied intermediary services or services of management and advice – held, advice ancillary and predominant supply of intermediary services – whether intermediary services in relation to item 6 (exempt) or item 9 (standard rated) – held, in relation to item 6 appeal allowed
- Cordery Build Ltd v Revenue & Customs  UKFTT 384 – VALUE ADDED TAX – Reduced rate – Schedule 7A Value Added Tax Act 1994 – Group 6 Notes 2, 3,4 and 6 – qualifying conversion – whether conversion of 36 bedsits in sheltered accommodation for the elderly into 36 self-contained flats amounted to “changed number of dwellings conversion” – No – Whether use prior to conversion was a home or other institution providing residential accommodation with personal care or an institution which is the sole or main residence of at least 90 per cent of its residents – No – Appeal dismissed
- Finance & Business Training Ltd v Revenue & Customs  UKFTT 382 – Education – Exemptions – Value Added Tax Act 1994, Sch 9, Group 6, Item 1, Note 1(b )- Exemptions – Whether the Appellant is a college of a university – Whether the Appellant is an eligible body
- Robinson Family Ltd v Revenue & Customs  UKFTT 360 – S.49 VATA and Art 5 VAT (Special Provisions) Order 1995 – creation of a sub-lease – whether there was the transfer of a business or the disposal of a new asset – Appeal Allowed
- The People’s Dispensary for Sick Animals (PDSA) v Revenue & Customs  UKFTT 362 – VAT – Input Tax – The Appellant a “not for profit” incorporated Society providing welfare and charitable services for sick and injured animals – Was the Appellant entitled to recover VAT on veterinary fees – No – The Pet Aid scheme was a non-economic activity – the veterinary supplies made to the pet owners not to the Appellant – Appeal dismissed
- WM Morrison Supermarkets Ltd v Revenue & Customs  UKFTT 366 – VAT – supply of disposable barbecues – whether VAT chargeable at a reduced rate on the charcoal element of the supply – reduced rate of VAT on solid fuel pursuant to Schedule 7A Group 1 Item 1(a) VATA 1994 – Commission v France Case C-94/09 considered – interaction with Card Protection Plan v C & E Case C-349/96 considered – significance of charcoal being a concrete and specific aspect of the supply – appeal dismissed
European Court of Justice
- Elsacom (Eighth VAT Directive)  EUECJ C-294/11 – Eighth VAT Directive – Arrangements for the refund of VAT to taxable persons not established in the territory of the country – Time-limit within which refund applications are to be submitted – Time bar
- Mahageben v Nemzeti (Taxation)  EUECJ C-80/11 – Taxation – VAT – Sixth Directive – Directive 2006/112/EC – Right to deduct – Conditions governing the exercise of that right – Article 273 – National measures to combat fraud – Practice of the national tax authorities – Refusal of the right to deduct in the event of improper conduct on the part of the issuer of the invoice relating to the goods or services in respect of which the exercise of that right is sought – Burden of proof – Obligation of the taxable person to satisfy himself as to the propriety of the conduct of the issuer of that invoice and to provide proof thereof
- Global Cash Access (Canada) Inc v The Queen 2012 TCC 173 – whether fees paid to Casino operator were for exempt financial supplies or taxable – characterisation of supplies