In Nettexmedia.com Ltd v HMRC (TC02470 – 24 January) a company (N) sold retail goods by the internet. Customers who paid it a monthly fee of £19.95 were entitled to purchase certain goods at below their normal retail price. Where customers purchased goods N treated the monthly fees as taxable consideration for their purchases and accounted for VAT accordingly. However where customers paid the monthly fee but did not purchase any goods N did not account for VAT on the fees. HMRC issued an assessment charging tax on the fees and N appealed contending that they were exempt from VAT under VATA 1994 Sch 9 Group 5 as being consideration for the management of their accounts. The FTT rejected this contention and dismissed the appeal. Judge Bishopp held that the monthly fees were ‘consideration for the taxable supply...
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In Nettexmedia.com Ltd v HMRC (TC02470 – 24 January) a company (N) sold retail goods by the internet. Customers who paid it a monthly fee of £19.95 were entitled to purchase certain goods at below their normal retail price. Where customers purchased goods N treated the monthly fees as taxable consideration for their purchases and accounted for VAT accordingly. However where customers paid the monthly fee but did not purchase any goods N did not account for VAT on the fees. HMRC issued an assessment charging tax on the fees and N appealed contending that they were exempt from VAT under VATA 1994 Sch 9 Group 5 as being consideration for the management of their accounts. The FTT rejected this contention and dismissed the appeal. Judge Bishopp held that the monthly fees were ‘consideration for the taxable supply...
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