VAT

Land was purchased in 2009 with the intention of building a residential property on it and the input VAT incurred was therefore reclaimed. The land is now being sold by the client without development

HMRC are taking part in a European Union (EU) trial of VAT ruling requests for complex cross-border situations.

Under the test scheme – which is set to run until 31 December – a firm registered for VAT in the UK and planning cross-border transactions to one or more participating member states can ask the Revenue for a ruling.

The Italian government announced a purse of €1bn to be spent on VAT repayments to large businesses. The move comes in response to infraction proceedings by European Commission for Italy’s failure to issue rebates due within reasonable time limits imposed by European law.

Firms owed VAT repayments from Italy should now expect to receive the funds, according to KPMG.

Ann Khoshaba t/a Cinnamon Café (TC2864)

Over the course of a year, about £20,000 of sales by a retail shop were found to have been paid for by the fraudulent use of a number of credit or debit cards. The business’s bankers have now reclaimed this amount from the trader

D Kishore (TC2855)

CRC v Rank Group plc, Court of Appeal

G Christodoulou (TC2819)

A business organises social and business events for clients in the UK and abroad. A recent party in Paris included charges for the use of a hotel on which French VAT was levied and the claim for repayment has been rejected

Mark Saggers Media Ltd (TC2815)

A property management company paid a franchise fee that enables it to manage property insurance claims within a specified postcode area. VAT was paid on the fee, but the company uses the flat rate scheme

...for Hyacinth. The scary situation in which a business makes an early VAT payment to HMRC but suffers a default surcharge