Vinny McCullagh (Grant Thornton) reviews Heating Plumbing Supplies Ltd where the court decided that a VAT group’s activities must be taken as a whole.
It is almost 27 years since the VAT Tribunal issued its decision in Kingfisher Plc [1991] VATTR 47. That decision laid to rest the contention of HM Customs and Excise (C&E) that the function of the VAT grouping provisions was ‘only to provide a simplified accounting method’ which ‘did not make the group a single taxable person’. C&E argued that: ‘Each member company issued its own invoices and also made its own supplies while the representative member simply accounted for the VAT due on those supplies.’
That view (that a VAT group was simply an administrative convenience) was overruled not only by the VAT Tribunal but also on appeal by the High Court. In his judgment delivered in 1993 (reported [1994] STC...
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Vinny McCullagh (Grant Thornton) reviews Heating Plumbing Supplies Ltd where the court decided that a VAT group’s activities must be taken as a whole.
It is almost 27 years since the VAT Tribunal issued its decision in Kingfisher Plc [1991] VATTR 47. That decision laid to rest the contention of HM Customs and Excise (C&E) that the function of the VAT grouping provisions was ‘only to provide a simplified accounting method’ which ‘did not make the group a single taxable person’. C&E argued that: ‘Each member company issued its own invoices and also made its own supplies while the representative member simply accounted for the VAT due on those supplies.’
That view (that a VAT group was simply an administrative convenience) was overruled not only by the VAT Tribunal but also on appeal by the High Court. In his judgment delivered in 1993 (reported [1994] STC...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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