The Upper Tribunal has ruled that an NHS trust did not provide car parking under a ‘special legal regime’ such that its supplies would be zero-rated. The case is important for two reasons. Firstly, it sets a limit on what can be considered a ‘special legal regime’ for the purposes of article 13 of the Principal VAT Directive and VATA 1994 s 41A. It is not sufficient that the public authority is subject to a generic public law obligation to follow guidance; rather, it is necessary to identify with precision the specific provisions of national law that give rise to the special legal regime. Secondly, the decision confirms that detailed factual and expert evidence is not required for a tribunal to find that treating a public authority as a non-taxable person would lead to significant distortions of competition.
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The Upper Tribunal has ruled that an NHS trust did not provide car parking under a ‘special legal regime’ such that its supplies would be zero-rated. The case is important for two reasons. Firstly, it sets a limit on what can be considered a ‘special legal regime’ for the purposes of article 13 of the Principal VAT Directive and VATA 1994 s 41A. It is not sufficient that the public authority is subject to a generic public law obligation to follow guidance; rather, it is necessary to identify with precision the specific provisions of national law that give rise to the special legal regime. Secondly, the decision confirms that detailed factual and expert evidence is not required for a tribunal to find that treating a public authority as a non-taxable person would lead to significant distortions of competition.
If you are not a subscriber, subscribe now to read this content.
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