Harrier LLC v HMRC

In Harrier LLC v HMRC (TC01562 – 28 November) a company (H) supplied various types of ‘photobooks’ produced by processing digital photographs. Initially it accounted for VAT on its supplies but subsequently it submitted a repayment claim on the basis that it was making supplies of books or booklets which qualified for zero-rating. HMRC rejected the claim on the basis that H was making supplies of photographic services which did not qualify for zero-rating. H appealed. The First-tier Tribunal allowed the appeal in part. Judge Berner held that ‘looking at the objective characteristics of the supplies that (H) makes the principal supply is clearly that of the photobooks themselves a supply of goods. The services that surround that supply including the making available of the production process are ancillary to the supply of the goods....