In Safeguard Europe Ltd v HMRC (TC02543 – 28 February) a company (S) manufactured a gel product which it called ‘Stormdry’. HMRC issued a ruling that the supplies of the product were standard-rated. S appealed contending that the product qualified for the reduced rate of VAT under VATA 1994 Sch 7A Group 2. The First-tier Tribunal allowed the appeal in principle finding that the product functioned as insulation and qualified as ‘energy-saving materials’ within the definition in Group 2 Note 1. (However the tribunal noted that S would still have to account for VAT on its sales as the reduced rate only applied to the installation of such materials.)
Why it matters: VATA 1994 Sch 7A Group 2 provides that the installation of ‘energy-saving materials’ qualifies for the reduced rate of VAT. The First-tier Tribunal accepted the company’s contention that...
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In Safeguard Europe Ltd v HMRC (TC02543 – 28 February) a company (S) manufactured a gel product which it called ‘Stormdry’. HMRC issued a ruling that the supplies of the product were standard-rated. S appealed contending that the product qualified for the reduced rate of VAT under VATA 1994 Sch 7A Group 2. The First-tier Tribunal allowed the appeal in principle finding that the product functioned as insulation and qualified as ‘energy-saving materials’ within the definition in Group 2 Note 1. (However the tribunal noted that S would still have to account for VAT on its sales as the reduced rate only applied to the installation of such materials.)
Why it matters: VATA 1994 Sch 7A Group 2 provides that the installation of ‘energy-saving materials’ qualifies for the reduced rate of VAT. The First-tier Tribunal accepted the company’s contention that...
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