VAT

The European Commission has confirmed that 13 European Union member states will participate in a pilot for private VAT ruling requests relating to cross-border situations.

The initiative will operate from this month to the end of the year and involve the UK, Belgium, Cyprus, Estonia, France, Hungary, Latvia, Lithuania, Malta, the Netherlands, Portugal, Slovenia and Spain.

Taxable persons planning cross-border transactions between two or more of the participating member states can ask for rulings with regard to complex transactions.

Thambithurai Sanjeevraj t/a Cambridge Food and Wine (TC2546)

A barn is being converted into residential accommodation. It was thought that VAT at the reduced rate of 5% would apply to this work. However, the barn is attached to the customer’s house

E D Hitchens (TC2547)

An importer of jewellery products from Italy registered for VAT to enable her to obtain the goods free of Italian VAT. However, she did not realise she should be charging VAT on her sales to customers. Arrears of £6,000 have arisen

Antiques Within Ltd (TC2507)

British Disabled Flying Association v CRC, Upper Tribunal (Tax and Chancery Chamber)

A local water authority owns land that adjoins a farm. The authority wishes to carry out work to its property, which will require access to the farmland. Compensation has been agreed but will this be subject to VAT?

A client has paid VAT input tax on the expenses relating to the construction of a property. She has claimed a repayment under the DIY housebuilders’ scheme, but HMRC have refused relief on the basis that she only has electronic versions of the receipts

Nettexmedia.com Ltd (TC2470)

HMRC v Esporta Ltd, Upper Tribunal (Tax and Chancery Chamber)

A VAT-registered taxpayer realises the flat rate scheme would have been beneficial and wants to register on a retrospective basis