Lee Squires and Fiona Bantock examine recent VAT developments, including: the decisions in Sub One Ltd (t/a Subway) and Granton Advertising; recent legislation on electronic filing and the reverse charge for gas and electricity; and guidance from the EU VAT Committee on the small consignments exemption.
In Sub One Ltd (t/a Subway) v HMRC [2014] EWCA Civ 773 the Court of Appeal (CA) examined the VAT treatment of toasted sandwiches and other hot takeaway food supplied by a Subway franchisee. The CA upheld the decisions of the First-tier Tribunal (FTT) and Upper Tribunal (UT) that the supply in this case was of hot food and therefore standard rated (pursuant to the criteria which applied at the relevant time under VATA Sch 8 Group 1 note (3)(b)).
