- The case concerns the supply of rebated fuel (red diesel) by GAP Group Limited (GAP) and whether it is part of the main supply of plant hire or a separate supply.
- GAP argues that its supplies of plant hire should be standard rated while supplies of red diesel should be at the reduced VAT rate.
- GAP also argues that if it is a single supply, then the red diesel should be taxed at the reduced rate.
- HMRC argues that the plant is unusable without fuel and therefore the fuel is supplied at the beginning of the hire.
- The First-tier Tribunal (FTT) determines that the fuel charge is not negotiable and the provision of fuel is a small part of GAP’s business.
- The FTT concludes that the supplies of plant and machinery and supplies of red diesel are separate supplies subject to VAT at different rates.
- The FTT dismisses GAP’s alternative ground of appeal that the red diesel should be taxed at the reduced rate.
Source: ey.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
