In Envoygate (Installations) Ltd v HMRC (TC03361 – 27 February 2014) the FTT found that the supply of bespoke box sash windows together with the fitting of draught stripping constituted separate supplies for VAT purposes.
HMRC accepted that supplies of draught stripping qualified for the reduced rate of VAT (VATA 1994 Sch 7A Group 2). However it argued that where a customer purchased both sash windows and draught stripping the taxpayer made a single taxable supply of a window with draught stripping which was therefore standard rated.
The FTT first noted that the two supplies were offered as separate and independent products in the company’s brochure and that some customers chose to purchase only one of them. Additionally the supplies were priced separately on invoices.
Referring in particular to the CJEU’s decisions in Card Protection Plan...
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In Envoygate (Installations) Ltd v HMRC (TC03361 – 27 February 2014) the FTT found that the supply of bespoke box sash windows together with the fitting of draught stripping constituted separate supplies for VAT purposes.
HMRC accepted that supplies of draught stripping qualified for the reduced rate of VAT (VATA 1994 Sch 7A Group 2). However it argued that where a customer purchased both sash windows and draught stripping the taxpayer made a single taxable supply of a window with draught stripping which was therefore standard rated.
The FTT first noted that the two supplies were offered as separate and independent products in the company’s brochure and that some customers chose to purchase only one of them. Additionally the supplies were priced separately on invoices.
Referring in particular to the CJEU’s decisions in Card Protection Plan...
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