Entries by VATDaddy

Supreme Court decision in Balhousie VAT case

The litigation in the case of Balhousie has reached its conclusion with a Supreme Court decision (2021 UKSC 11).  This concerns the application of the ‘clawback’ provisions that apply where the construction or purchase of a new building was made on a zero rated basis, and the building is later disposed of, within the first ten […]

The Cost Sharing Exemption and VAT Groups

This commentary arises from the decision of the CJEU in the case of Kaplan (C-77/19).  The decision precedes the end of the Transition Period, and is thus binding precedent, save to the extent that this can be overridden by senior courts of the UK.  This means, essentially, that the decision sets the applicable rule unless and until […]

Payroll Services provided by Charities

Charities sometimes provide payroll services to persons with disabilities, to allow these people to employ, and remunerate, a carer.  The provision of care services by a charity would be exempt from VAT.  Where the only service provided is of running the payroll service, the charity will argue that that service is exempt, owing to the […]

VAT and Supporting People Supplies

This commentary relates to the case of Birmingham YMCA (and others), about which I wrote a previous commentary in September 2018, and in respect of which an appeal has been heard at the Upper Tribunal (UKUT0143). From the VAT technical point of view, this is a case about the application of VAT exemption to welfare services. Where a decision […]

VAT zero rate for reading material

Charities and their advisers will be aware of the favourable zero rate VAT regime for reading material that has applied in the UK since the days of purchase tax.  They will also know of the seemingly illogical stance of HMRC that this relief only applies to old fashioned physical print formats and not to modern […]

VAT on matchmaking

Art or science? If you want to research what actually happens in certain walks of life, VAT tribunal reports are a treasure trove. We learn about the purpose and activities behind pilates (Hocking [2014] UKFTT 1034), belly dancing (Cheruvier [2014] UKFTT 7), fortune telling (Indian Palmist (2003) VAT Decision 18397), and several more. To this, and the others, […]

Risk of Supporters becoming responsible for VAT

It is quite common in charity circles for helpful supporting individuals to become involved in assisting the charity in various ways.  In some cases a fundraising event, such as a golf day, might be organised, year on year, by the same individual, all the proceeds of which go to that charity.  Or a group of […]