AXA attempts to confront the CJEU on the VAT issueIn HMRC v Axa UK plc a company which collected fees for dentists by monthly instalments (the Denplan product) had treated the sums which it charged its clients as exempt from VAT. The EU has already ruled that this service was taxable not exempt under EU VAT law. This was no surprise. HMRC had thought the services were taxable.
But both sides were surprised by the basis of the decision. HMRC had argued that the service was administrative. AXA said it was an exempt finance service. This is classic battlefield territory between HMRC and taxpayers. Neither thought the service was ‘debt collection’. That...
