In AV Concepts Ltd v HMRC (TC03030 – 8 November 2013) the taxpayer supplied ‘sophisticated’ whiteboards to schools for cash consideration and the supply by the school of obsolete equipment.
The issue was whether these transactions were part exchange transactions if not the allowance for the obsolete items were effectively discounts. The tribunal agreeing with HMRC’s guidance noted that an allowance on the old equipment regardless of its identity or condition should be treated as a cash discount for VAT purposes. However the tribunal concluded from the evidence that the price given for the buy-back items was influenced by the ‘general nature of what was bought back’ and so could not constitute a discount.
Furthermore as it was impossible to work out how much the trade-in items were subjectively worth to the Appellant the cash...
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In AV Concepts Ltd v HMRC (TC03030 – 8 November 2013) the taxpayer supplied ‘sophisticated’ whiteboards to schools for cash consideration and the supply by the school of obsolete equipment.
The issue was whether these transactions were part exchange transactions if not the allowance for the obsolete items were effectively discounts. The tribunal agreeing with HMRC’s guidance noted that an allowance on the old equipment regardless of its identity or condition should be treated as a cash discount for VAT purposes. However the tribunal concluded from the evidence that the price given for the buy-back items was influenced by the ‘general nature of what was bought back’ and so could not constitute a discount.
Furthermore as it was impossible to work out how much the trade-in items were subjectively worth to the Appellant the cash...
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