Richard Woolich and Jonathan Gordon consider the implications for future VAT planning following the FTT decision in DPAS Ltd
In HMRC v AXA UK PLC (C-175/09) [2010] STC 2825 the CJEU held that a company’s service of invoicing and collecting payments from patients which are not overdue and passing them to dentists was not exempt from VAT because it constituted taxable debt collection under what is now article 135(1)(d) of the Principal VAT Directive 2006/112/EC.
Following that decision in the recent case of DPAS Ltd v HMRC [2013] UKFTT 676 (TC) the FTT held that DPAS Ltd’s supply of payment services directly to the patients could not be a taxable supply of debt collection services...
