VAT CASES - 28.02.2024
Should VAT on ride-hailing service be based on profit margin?
The case. Bolt Services UK Ltd (B) provides passenger transport services in private hire vehicles (PHVs) to travellers via its smartphone app. In October 2022, the company asked HMRC to confirm that its services qualified as a tour operators margin scheme (TOMS) supply, i.e. output tax was only payable on the profit margin for a deal. HMRC replied by saying that output tax was payable on the full amount paid by the traveller because B was not a tour operator or travel agent. The PHV owners were all in business on their own account and were able to accept or decline jobs offered to them. ...
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VAT CASES - 04.01.2024
Did company provide medical care or cosmetic treatment?
The case. Epem Ltd (E) claimed that it had no liability to register for VAT because all its supplies were exempt from VAT as being relevant to medical care. HMRC disagreed and, in the absence of evidence to support a care outcome, treated the supplies as wholly cosmetic and standard-rated and registered it for VAT from 1 August 2007. E submitted a series of nil returns before HMRC carried out a compliance visit in May 2013, which led to an assessment being issued. E appealed. ...
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BUILDING WORK - 31.10.2023
Can you charge 5% VAT if owner has moved in?
Your building services will qualify for 5% VAT if a residential property has not been lived in for at least two years. But in what situations can you still charge 5% if the owner moves in before you start work?
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RECHARGES - 29.09.2023
VAT on zero-rated expenses recharged to customers?
A subscriber trades as a consultant and a customer has asked why VAT has been charged on rail and air travel costs recharged on their sales invoices. The customer has asked for a VAT credit because they are a zero-rated disbursement. Are they correct?
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FUNDRAISING - 31.08.2023
Is fundraising income exempt from VAT?
You’re the treasurer of a not-for-profit organisation which is registered for VAT and it needs to raise funds to buy some new equipment. You’ve decided to organise a fundraising event. What should you do about VAT to maximise your surplus?
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VAT CASES - 27.06.2023
Were turmeric shots classed as “food” or a “beverage”?
The case. Innate-Essence Ltd (I) was formed by a professional footballer and his father, trading as The Turmeric Co. Four different brands of 60ml shots are sold by the company, including Raw Turmeric and Beetroot. The products are sourced from farms in Peru. The turmeric roots are hand-prepared, crushed and pumped to extract liquid. I claimed that the shots were intended to give health benefits, providing “natural, raw nutrition to support and aid optimum health”, so qualified as zero-rated food. HMRC claimed that they were beverages that were consumed to “fortify and give pleasure” , and should be standard-rated. ...
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