In cases where there’s a disagreement between a taxpayer and HMRC regarding VAT interpretation, either party can seek resolution by initiating proceedings in the First Tier VAT Tribunal. Depending on the outcome, either party has the option to escalate the matter to the Upper Tier VAT Tribunal. If either party finds the decision unsatisfactory and believes there are grounds for appeal, the next recourse typically involves the UK Court of Appeal.
Whilst a decision at a First Tier VAT Tribunal does not create a precedent it can be informative on the factors that were seen to influence a position.
To keep up to date with cases that may affect the VAT treatment applied to your activities, there is a list of cases proceeding through the Appeals process which can be accessed here.
Always check the date that this list was updated to ensure you are looking at the current listing.
There are several VAT-related cases of interest currently – to note just a few of those:
- Innovative Bites is the case on the VAT liability of Giant Marshmallows
- Sonder Europe on the application of the Tour Operators Margin Scheme (TOMS) on supplies of serviced residential accommodation
- Yorkshire Agricultural Society – on whether the Great Yorkshire Show and the income from admissions could be seen as VAT Exempt under the VAT Fundraising rules
VAT is a complex tax – staying up to date with news from the legal process as well as VAT updates from advisers and accountants is increasingly important.
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