The VAT review for February 2022

This month’s VAT review includes developments relating to the VAT land exemption notably the government’s response to its 2021 call for evidence and a recent decision of the FTT (City YMCA London v HMRC) on the meaning of a right to exclusive enjoyment of property. A Scottish non-tax case (Ventgrove Ltd v Kuehne + Nagel Ltd) indicates that lease break fees may not necessarily be subject to VAT. The FTT decision in Hotel La Tour Ltd v HMRC highlights how it may be possible to look through an exempt supply to the ultimate purpose of the taxpayer when allocating input VAT incurred on fundraising activities. Perhaps unsurprisingly in Zipvit the CJEU has held that amounts paid under a contract did not include VAT where the parties mistakenly treated them as exempt and the contract provided the price was exclusive of VAT. Finally the High Court decision in...