British Film Institute v HMRC

In British Film Institute v HMRC (TC02490 – 12 February) the Institute which is a non-profit-making body had accounted for output tax on its admission charges to films which it showed at the National Film Theatre and at various festivals. In 2009 it submitted a repayment claim on the basis that it should have treated these supplies as exempt under article 13A(1)(n) of the EC Sixth Directive. HMRC rejected the claim on the basis that Article 13A(1)(n) did not have direct effect. BFI appealed. At a preliminary hearing the First-tier Tribunal accepted BFI’s contention that article 13A1(n) had direct effect applying the CJEU decision in EC Commission v Spain [1998] STC 1237. The tribunal also held that BFI’s films were ‘cultural services’ specifically declining to follow the VAT tribunal decision in Chichester Cinema at New Park Ltd (VTD 19344). (Both sides were...