- The High Court refused permission for Anglia Ruskin Students’ Union to apply for judicial review regarding their catering operation, Café 92, which HMRC classified as a bar, thereby making it ineligible for VAT exemption under the catering concession outlined in VAT Notice 709/1.
- The court found that the term “bar” in the concession includes establishments that serve both drinks and food, contradicting the taxpayer’s argument that a bar cannot also provide catering services, leading to the rejection of their claims on the grounds of construction and application of the concession.
- Additionally, the court dismissed the Union’s claims of irrationality and differential treatment, asserting that student unions do not qualify for VAT exemptions as their operations, including Café 92, are deemed taxable businesses, distinct from the educational services provided by eligible bodies.
To access the judgment, click here.
Source KPMG
