Was the test laid down in UK case law for determining whether an activity was ‘economic’ for VAT consistent with EU case law, or did they conflict? This was the long-running debate the Court of Appeal judgment in Longridge on the Thames was thought to bury. Now, just two years later, with another Court of Appeal judgment – in Wakefield College – the debate has been disinterred. In that case, the court held, inter alia, that whether there is a supply for consideration and whether the activity in question is economic are separate questions; and contrary to Longridge, satisfaction of the test for a supply for consideration does not give rise to a presumption or general rule that the activity is economic. While Wakefield College now appears to be the last word on the topic, it would be unsurprising, given the history, if the saga continues.
