In Colaingrove, the Court of Appeal held that the reduced rate of VAT does not apply to supplies of electricity which form part of a composite standard rated supply. In Commission v Luxembourg, the CJEU adopted a strict approach to the cost-sharing exemption, holding that Luxembourg’s implementation of it was contrary to EU law. In AC (Wholesale), the Upper Tribunal held that HMRC was not required to eliminate all other reasonable explanations in order to show that a taxpayer should have known that its transactions were connected with VAT fraud. In Brockenhurst College, the CJEU held that supplies made by educational establishments as a result of students applying their skills in a practical context may be VAT exempt.
