In Coin-a-Drink v HMRC [2017] UKUT 211 (31 May 2017) the UT confirmed that a repayment of VAT is subject to corporation tax.
Coin-a-Drink (CAD) operates vending machines through which it sells food and drinks. It had accounted for VAT on its supplies between 1973 and 1984 but it was later recognised that the supplies should have been zero rated and CAD had made a claim for repayment which HMRC had accepted.
The issue was whether the repayments should be included in CAD’s taxable profits. In Shop Direct Group [2016] UKSC 7 the Supreme Court had decided that a repayment of overpaid output tax falls into taxable profit in the year of receipt. However CAD contended that the Supreme Court had not been asked to consider the character of what was received; it was not a simple repayment within s 80...
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In Coin-a-Drink v HMRC [2017] UKUT 211 (31 May 2017) the UT confirmed that a repayment of VAT is subject to corporation tax.
Coin-a-Drink (CAD) operates vending machines through which it sells food and drinks. It had accounted for VAT on its supplies between 1973 and 1984 but it was later recognised that the supplies should have been zero rated and CAD had made a claim for repayment which HMRC had accepted.
The issue was whether the repayments should be included in CAD’s taxable profits. In Shop Direct Group [2016] UKSC 7 the Supreme Court had decided that a repayment of overpaid output tax falls into taxable profit in the year of receipt. However CAD contended that the Supreme Court had not been asked to consider the character of what was received; it was not a simple repayment within s 80...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
