In Colaingrove v HMRC [2017] EWCA Civ 332 (4 May 2017) the Court of Appeal found that the supply of electricity as part of the supply of holiday accommodation was not a reduced-rate supply.
Colaingrove ran a holiday park with static caravans. Under the terms of the holiday let customers would pay a sum for the accommodation and the use of facilities including electricity.
Supplies of electricity are subject to a reduced charge (VATA 1994 s 29A); however HMRC considered that the supplies were part of a composite supply of holiday lets and were therefore standard rated. Referring to EC v France (Case C-94/09) (the French Undertakers case) the Court of Appeal noted that the CJEU had accepted that member states could apply a reduced VAT rate on an individual item of a single supply subject to the principle of fiscal neutrality.
The Court...
