There is an old saying (in the world of VAT at least) that just because it’s illegal doesn’t mean it’s not taxable. When trying to make this point, HMRC has come unstuck, not for the view but their timing.
The taxpayer supplies cannabinoid products. It had sought a ruling from HMRC that these products were zero-rated as food. HMRC did not agree and issued a substantial assessment (£430K+) for sales that HMRC saw as standard rated. This was appealed to Tribunal and each party submitted their statement of case. Then, sometime later, HMRC sought to amend their statement to add that the supply was subject to VAT at 20% because it was an illegal product.
Source Richard Luckin
Latest Posts in "United Kingdom"
- Partial Success for Transwaste in VAT Kittel Appeal; Some Penalties and Input Tax Denials Upheld
- UK Ends VAT on Donated Goods, Boosting Charities by £72.5 Million Annually
- Calls to Abolish VAT for Youth Clubs and Community Centres to Aid Vital Repairs
- Court Ruling Redefines VAT Status for Further Education Colleges and Potentially Academies
- Tribunal Partly Allows Transwaste VAT Appeal; Upholds Penalties Where Fraud Knowledge Proven
