In both cases, the taxpayer argued that UK legalisation breached the principle of fiscal neutrality because taxed supplies were sufficiently similar to exempt supplies. The FTT allowed the taxpayers’ appeals.
On appeal to the Upper Tribunal, HMRC’s position was that the FTT had erred in its approach to the evidence on the similarity of supplies, in particular in relation to the average consumer’s needs and characteristics.
The Upper rejected HMRC’s appeal, holding that the CJEU case law does not prescribe any particular methodology which must be adopted or evidence which must be available in making the determination of the needs and point of view of the average consumer.
Source: monckton.com
