V@ update - July 2020

Welcome to RPC's V@, a monthly update on developments in the VAT world that may impact your business.

We hope you enjoy reading the publication. If you have any feedback on the content or format, please let us know or get in touch with your usual RPC contact.

News

Treasury makes the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 reducing the rate of VAT for supplies in the hospitality and tourism sector

The Treasury has made the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020, which came into force on 15 July 2020. Read more

HMRC extends zero-rating of supplies of personal protective equipment

The Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order 2020, came into force on 1 May 2020 and added a new Group 20 (Personal Protective Equipment (Coronavirus)) to Schedule 8, VATA 1994, thereby extending zero-rating to supplies of equipment to provide protection from infection made in the period from 1 May 2020 to 31 July 2020. Read more

HMRC extends application of extension of deadline to notify decision to opt to tax land and buildings

HMRC has updated its guidance, published on 14 May 2020, which temporarily changes the way taxpayers need to notify an option to tax land and buildings during coronavirus. Read more

Case reports

KrakVet - CJEU rules that the place of supply of distance sales between EU member states is the location of the customer where the role of the supplier is predominant in initiating and organising the essential stages of the dispatch or transport of the goods

In KrakVet Marek Batko sp.k. v Nemzeti Ado- es Vamhivatal Fellebbviteli Igazgatosaga (Case C-276/18), the Court of Justice of the European Union (CJEU) provided a preliminary ruling in respect of a referral in proceedings between KrakVet Marek Batko sp.k (KrakVet), a Polish company, and the Hungarian tax authority, concerning the payment of VAT on the sale of goods through KrakVet's website to purchasers residing in Hungary. Read more

 BlackRock Investment Management (UK) Ltd - CJEU rules that VAT exemption for the management of special investment funds does not apply to a single supply of services used to manage both special investment funds and other funds

 In BlackRock Investment Management (UK) Ltd v HMRC (Case C-231/19), the CJEU provided a preliminary ruling in respect of a referral from the Upper Tribunal in proceedings concerning HMRC's refusal to grant BlackRock Investment Management (UK) Ltd the benefit of the exemption from VAT of the management of special investment funds (SIFs) provided for in Article 135(1)(g) of the Principal VAT Directive 2006/112/EC (the Fund Management Exemption). Read more

 Mandarin Consulting Limited - FTT finds that usual residence does not include temporary residence for a specific and definite period

 In Mandarin Consulting Ltd v HMRC [2020] UKFTT 228 (TC), the taxpayer appealed against two assessments for under-declared output tax in respect of supplies of career coaching and support to students of Chinese origin (the supplies). Read more