V@ update - May 2020

Welcome to the first edition of RPC's V@, an update on developments in the VAT world that may impact your business.

We hope you enjoy reading our new 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 (Zero Rate for Personal Protective Equipment) (Coronavirus) Order 2020 extending zero-rating to personal protective equipment

On 29 April 2020, the Treasury made the Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order 2020, which came into force on 1 May 2020. Read more

Treasury makes the Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020

On 29 April 2020, the Treasury made the Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020, which came into force on 1 May 2020. Read more

HMRC publishes guidance on notifying an option to tax land and buildings during COVID-19

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

Case reports

Virgin Media - fixed line rental services were not "supplied on terms allowing a discount for prompt payment"

In Virgin Media Ltd v HMRC [2020] UKUT 100 (TCC), the Upper Tribunal (UT) found against a taxpayer which appealed against a decision of the First-tier Tribunal (FTT) upholding HMRC's decision that the prompt payment discount rules in paragraph 4, Schedule 6, VATA 1994, did not apply to certain fixed line rental services provided by the appellant to customers (the services). Read more

NHS Lothian Health Board – tribunals must adopt a flexible approach to quantification of historical claims for repayment of input VAT

In NHS Lothian Health Board v HMRC [2020] CSIH 14, the Court of Session allowed the appellant's appeal against decisions of the FTT and the UT upholding HMRC's decision that the appellant could not recover input tax in respect of supplies made by laboratories operated by the appellant and its predecessors to persons outside the NHS. The Court set aside the decisions of the FTT and the UT and remitted the case to a differently constituted FTT for reconsideration. Read more

Rank Group - overpaid output tax claimed out of time cannot be recovered by set-off provisions

In The Rank Group PLC v HMRC [2020] EWCA Civ 550, the Court of Appeal found that it was not possible for the appellant to recover the net amount of an out of time claim under section 80(1), VATA 1994, for overpaid output tax in respect of supplies of bingo which it had incorrectly treated as taxable rather than exempt (the disputed VAT), as a set off in relation to other accounting periods in respect of which HMRC had made repayments of net overpaid output tax, pursuant to three section 80(1) claims which the appellant made in time. Read more