This month’s review by Jo Crookshank and Gary Barnett (Simmons & Simmons) covers cases concerning payments to acquire ‘credits’, VAT groups and pension funds.
VAT credits and supplies
Two recent cases one concerning monthly plan bundles supplied by a Telecom company (Lycamobile UK Ltd v HMRC [2024] UKFTT 638) and the other involving a Pass for entry to tourist sites and events (Go City Ltd v HMRC [2024] UKFTT 745) have both raised the argument that payments made by the consumer were not immediately chargeable to VAT since they amounted merely to the acquisition of credits to be used for future supplies.
Go City
Following a difficult history with HMRC and the VAT treatment of it Pass Go City restructured the terms of its London Pass in 2019 so that it provides customers with ‘credits’ which are used to gain entry to sites/activities with...
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This month’s review by Jo Crookshank and Gary Barnett (Simmons & Simmons) covers cases concerning payments to acquire ‘credits’, VAT groups and pension funds.
VAT credits and supplies
Two recent cases one concerning monthly plan bundles supplied by a Telecom company (Lycamobile UK Ltd v HMRC [2024] UKFTT 638) and the other involving a Pass for entry to tourist sites and events (Go City Ltd v HMRC [2024] UKFTT 745) have both raised the argument that payments made by the consumer were not immediately chargeable to VAT since they amounted merely to the acquisition of credits to be used for future supplies.
Go City
Following a difficult history with HMRC and the VAT treatment of it Pass Go City restructured the terms of its London Pass in 2019 so that it provides customers with ‘credits’ which are used to gain entry to sites/activities with...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
