VATWatch - April 2025
Taxi Rides Can Fall Within TOMS
You may remember that last year the First Tier Tribunal looked at the ride hailing app, Bolt, and found that their income could be treated as TOMS. This is significant as it means VAT is due on the margin only, not on the full price paid by the customer.
The Upper Tribunal have now heard HMRC’s case and have confirmed the FTT’s view. We are waiting to see if HMRC will appeal again but, in the meantime, here is my case summary from AccountingWEB.
We are finalists!
We are really pleased to be able to announce that we have been chosen as finalists in the Tolley’s Taxation Awards in the Best VAT Team Category.
A number of our friends in the VAT Practitioners’ Group are also finalists (but not in the same category, so we can cheer them on!) so we’re really looking forward to the awards night in May.
Scottish Visitor Levy (SVL)
ICAS raises concerns with Scottish government about VAT guidance on new Visitor Levy.
CIOT tax administration simplification survey
CIOT would like to capture members’ ideas on administrative changes to help identify where improvements could be made to the operation of the tax system. They have prepared a survey, which provides a template to allow you to outline your ideas.
Council of the EU adopts VAT in the digital age package
Last month the Council gave its go ahead on a set of laws to make the EU’s VAT rules fit for the digital age. The adopted package covers a directive, a regulation and an implementing regulation that will effect changes to three different aspects of the VAT system.
FTT rules the supply of hair transplant surgery to alopecia patients principally outside the exemption for VAT.
Advanced Hair Technology Limited (AHT) is a medical practice specialising in hair restoration surgery. It treated some alopecia conditions related to hair loss as a medical condition as opposed to providing aesthetic surgery, and therefore believed its supplies to be exempt for VAT purposes.Â
In 2018, HMRC determined that the majority of AHT’s supplies were, in fact, standard rated with a VAT at stake amounting to £2,498,232, with penalties of £374,734. AHT appealed the decision to treat its supplies as standard rated to the first tier tribunal (FTT).
VAT Points From the Spring Statement
Thank you for taking the time to read this VATwatch round-up.
