The advocate general recently delivered her opinion on Town and County Factors Ltd v Commissioners of Customs and Excise [1998] STC 225. Town and County Factors Ltd is the representative member of a group of companies, which includes Vernons Games Ltd, and the appeal concerned the VAT on entry fees for organising Spot the Ball competitions.
On the two main questions referred to the European Court of Justice, the advocate general supports Customs' arguments against the appellant. In essence these were:
The advocate general recently delivered her opinion on Town and County Factors Ltd v Commissioners of Customs and Excise [1998] STC 225. Town and County Factors Ltd is the representative member of a group of companies, which includes Vernons Games Ltd, and the appeal concerned the VAT on entry fees for organising Spot the Ball competitions.
On the two main questions referred to the European Court of Justice, the advocate general supports Customs' arguments against the appellant. In essence these were:
* that there is a legal relationship even in the case of an agreement which is not legally enforceable, and this may in principle constitute a taxable transaction for the purposes of VAT; and
* the taxable amount in this case is the amount of the entry fees, without adjustment for the value of prizes paid out, thus distinguishing H J Glawe Spiel-und Unterhaltungsgeräte Aufstellungs-gesellschaft mbH & Co KG v Finanzamt Hamburg-Barmbek-Uhlenhorst [1994] STC 543.
