- GAP Group Ltd hired plant equipment to construction companies
- They provided diesel-powered plant with a full tank of fuel
- Customers could either return the plant with a full tank or pay for the fuel used
- The First-tier Tribunal ruled that the fuel charges were separate from the hire
- Charges for fuel made up only 3.4% of GAP Group’s total turnover
- These charges were calculated at the end of the hire period
- GAP Group’s supplies of diesel qualified for the reduced rate of VAT
- This was because they provided less than 2,300 litres of fuel for ‘domestic use’
Source: taxscape.deloitte.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.
