VATWatch - June 2025
JD Wetherspoon PLC
Option to Tax on De-registration
HMRC are improving the ‘Option To Tax’ part of the VAT de-registration process and are looking to test prototypes in the coming weeks with those who would be expected to fill in the form.
If you are interested in helping or have any questions, please email ben.bywater@digital.hmrc.gov.uk. The research will take the form of 1-1 hour-long sessions between mid-May and early June. All data will be confidential / anonymised.
Generic Maths Ltd
In a First-Tier Tribunal (FTT) Generic Maths (GM) appealed against HMRC’s decision that their ConquerMaths was not a supply of exempt examination services within item 3 group 6 schedule 9 VATA 1994.Â
The product they supply is predominantly a tool that provides assessments enabling those using the product (referred to in this judgment as “pupils”) or their parents/teachers to determine what level of maths ability the pupil has reached and identify any gaps in knowledge. As such, GM argued that this product is an exempt supply for VAT purposes, since it falls into the category “examination services” exempt under Item 3 of Group 6 Schedule 9 VATA. HMRC argued that the product was an online mathematical tutorial tool, not a form of examination services; and accordingly, the supply made by GM was standard rated.Â
While The FTT accepted that the GM product included diagnostic tests, it did not consider that the product was a supply of examination services within Item 3. Appeal dismissed.
Align Technology - VAT Exemption update
In a First-Tier Tribunal (FTT) Align Technology (Align) appealed HMRC’s decision that supplies of Invisalign clear aligners were chargeable to VAT at the standard rate. Align treated the supplies of the aligners as exempt supplies of dental prostheses within items 2 and 2A in Group 7 of Schedule 9 to the Value Added Tax Act 1994 (‘VATA94’).
Having considered the parties’ submissions and the different materials presented, FTT concluded that the aligners are dental prostheses for the purposes of VAT. Appeal allowed.
Get a Drip - VAT Exemption Update
In a First-Tier Tribunal (FTT) Get A Drip Ltd (GAD) appealed HMRC’s decision of the 11 September 2018 that supplies made GAD in the VAT quarter ended October 2017 were standard rated for Value Added Tax (“VAT”) purposes. The supplies in question consist of intravenous vitamin drips and injectable booster shots. GAD maintained that the Supplies are exempt from VAT as they fall within Item 1, Group 7, Schedule 9 of the Value Added Tax Act 1994 (“VATA”) which exempts the supply of services consisting of the provision of medical care by certain listed practitioners.
FTT held that the supplies contained in 11 representative samples were supplies of “medical care” and within the exemption. Appeal Allowed
Having considered the parties’ submissions and the different materials presented, FTT concluded that the aligners are dental prostheses for the purposes of VAT. Appeal allowed.
Walkers Snack Foods
Walkers appealed the Upper Tribunal after the First Tier Tribunal said their poppadom snacks were more similar to crisps (standard rated) than poppadoms (zero rated). Unfortunately for Walkers, the UT agreed with the FTT.
Tolley’s Taxation Awards
We were lucky enough to attend the Tolley’s Taxation Awards in London last month as we were finalists in the category of Best VAT Team. Whilst we didn’t win on the night, we had a fantastic evening catching up with lots of lovely VAT people.
Thank you for taking the time to read this VATwatch round-up.
