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Indirect Tax News Page
VAT on the import and sale of natural gas
A new EU directive, Council Directive 2009/162/EU, was issued in December heralding some important and welcome changes to the treatment of imports and supplies of natural gas and of electricity. The changes are expected to take effect from 1st January 2011.
An updated version of the North Sea Memorandum has just been issued by UKOITC (February 2010).
VAT: Zero rating of emissions allowances
As announced by HMRC in Revenue & Customs Brief 46/09, with effect from 31 July 2009 trading of emissions allowances will be generally zero-rated, rather than taxable at the standard rate. This move is in response to the escalating threat of Missing Trader Intra-Community (MTIC) VAT fraud.
The 2009 Budget was delivered by the Chancellor of the Exchequer on Wednesday 22 April. The more important points relating to direct tax and VAT were circulated to clients by CWE later that evening and are in the note attached.
Partial Exemption - Changes to the Standard Method
Revenue & Customs Brief No 19/09 of 1 April announced four changes to simplify the partial exemption standard method. These take effect from 1 April 2009.
Increase in fuel duty rates from 1 April 2009
Revenue & Customs Brief 22/09 of 30 March, sets out the fuel duty rates that will apply from 1 April 2009.
Reliance on incorrect advice
Revenue & Customs Brief 15/09 of 27 March announced the withdrawal of an Extra-Statutory Concession, 3.5, on the circumstances in which taxpayers could rely on incorrect advice from HMRC.
Company cars – advisory fuel rates from 1 January 2009
On 2 December, following the Pre-Budget Report, details were published of the advisory fuel rates from 1 January 2009
In his Pre-Budget Report on 24th November 2008, the Chancellor announced that the standard rate of VAT will be reduced to 15% on 1st December 2008.
The 6th Edition of VAT and the City, written by Peter Landon, was published by CCH in November 2007.
Hedging - whether there is always an exempt supply
A recent decision of the VAT Tribunal in the case of Willis Pension Trustees Ltd has raised a question mark over the VAT treatment of a number of transactions frequently undertaken by businesses as a financial hedge.
Insurance-related services following the Arthur Andersen & Co case
Following the ECJ Ruling in the Arthur Andersen & Co case, there has been a Consultation by HMRC on changes in the VAT Act to the exemption for insurance-related services.
A useful Opinion on Fund Management?
The recent Opinion of Advocate General Kokott in the Abbey National plc and Inscape Investment Fund case raises some interesting issues for the managers of investment funds.
The VAT treatment of phonecards
In Business Brief 03/05 on 21st December 2004, Customs announced their decision to appeal to the Court of Appeal a recent decision of Mr Justice Moses in the High Court (Administrative Division) in a dispute involving the issue and supply of phonecards
VAT avoidance and the Halifax and BUPA cases
On 7th April, the Advocate General also gave his Opinion in the Halifax and BUPA Hospitals Ltd, cases (as well as in that of the University of Huddersfield Higher Education Corporation). All three cases involve transactions entered into for the purpose of gaining a tax advantage in terms of a right to deduct input VAT.
VAT – the recovery of input tax on share issue costs
The issue of shares and other securities has always been considered by Customs & Excise to be a supply for VAT and, where the issue is to someone in the UK or another EC country, the VAT on such costs has not been allowed.
On 21st October the Court of Appeal delivered its long-awaited judgment in the Marks & Spencer plc v Commissioners of Customs and Excise and Commissioners of Customs and Excise v University of Sussex appeals.
Peugeot lose their Appeal on Free Insurance
In October Peugeot Motor Company Plc lost its appeal to the High Court over the provision of free insurance on the supply of new cars.
Tesco lose at the Court of Appeal
On 14th October the Court of Appeal decided against Tesco in their appeal over the VAT treatment of shopping vouchers.
A VAT avoidance scheme is heavily criticized by the Tribunal
On 3rd June the Tribunal delivered its decision in the Debenhams Retail Plc case, an appeal which concerned a VAT avoidance scheme of a type in common use amongst the major High Street retail chains.
Recent successes before the VAT Tribunal have shown that Customs attitude towards the exemption of outsourcing can be too restricted, a fact which Customs now seem to accept
Customs try unsuccessfully to curtail the right of members of a VAT group to appeal
In a dispute that they should never have instigated, Customs recently sought to deny a right of appeal against a VAT assessment by members of a VAT Group
Capital Contributions and Share Issues
In June the ECJ gave a ruling to the effect that no supply takes place for VAT when a partnership admits a new partner in consideration of payment of a contribution in cash. This may have wider implications that first appears.
Equitable Life succeeds in exempting services provided to another insurer
A recent decision of the Tribunal confirmed the availability of exemption for certain support services provided to another insurer.
The ECJ confirms the treatment of factors
On 26th June, the ECJ 2003 confirmed the line taken recently by Advocate General Jacobs in the Finanzamt Groß-Gerau V MKG-Kraftfahrzeuge-Factoring GmbH case.
Registered Dealers in Controlled Oil
New legislation has been introduced requiring distributors of marked rebated
fuels to be approved by Customs. The new scheme took effect on
Supplies of Gas via the Interconnector
UKOITC have just issued Newsletter 3-2002 on supplies of natural gas
that passes through the Interconnector from Bacton to Zeebrugge.
Introduction of revised rules for obtaining duty relief on tied oils
Customs have recently announced revised rules for obtaining duty relief on tied
oils.
Details can be found in Business Brief
24/02
A potential problem for 8th
or 13th
Directive claims
The
WHA Ltd; Viscount Reinsurance
case raises a question mark over some claims under the EC 8th
or 13th
Directives.
A potential problem with fixed plant.
A recent Opinion in a case before the ECJ raises an interesting question over
the treatment of fixed plant.
VAT EC Online Validation Service
From 14th
June 2002, businesses across Europe can check on the internet the validity
of their customers’ VAT numbers.
In December 2001, the High Court overturned an earlier decision of the Tribunal not allowing discount vouchers to reduce the value of a supply and the consideration to be further apportioned so as not to tax a non-VATable amount.
To see earlier news items please go to
Archived News (Indirect tax)