Colaingrove Ltd. v Customs & Excise

Colaingrove Ltd. v Customs & Excise

The exclusion of the letting of seasonal pitches for caravans from the VAT exemption under UK law is compatible with article 13B(b) of the EC Sixth VAT Directive. The Directive confers a wide discretion on member states to define further exclusions, provided the policy objective is consistent with the rationale of the exemption and the measure is reasonable. The UK's test of seasonality for caravan pitches is a reasonable way to identify holiday use and is not disproportionate or discriminatory under EU law.

Parties
Appellant: Colaingrove Ltd; Respondents: The Commissioners of Customs & Excise
Jurisdiction
England and Wales
Judgment Date
19 February 2004
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat), Exemptions Under Sixth Directive, Letting of Immovable Property, Discretion of Member States, Discrimination in Tax Treatment
Tax Law European Union Law Value Added Tax (vat) Exemptions Under Sixth Directive Letting of Immovable Property Discretion of Member States Discrimination in Tax Treatment

Case Brief

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Parties

Colaingrove Ltd

Appellant

The Commissioners of Customs & Excise

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether article 13B(b) of the EC Sixth VAT Directive permits a member state to charge VAT on the supply of licences for the parking of static caravans via the 'tailpiece member state option'.
  2. 2 Whether the UK's exclusion of seasonal pitches for caravans from the VAT exemption is compatible with the Directive and principles of EU law, including proportionality and non-discrimination.

Ratio Decidendi

The exclusion of the letting of seasonal pitches for caravans from the VAT exemption under UK law is compatible with article 13B(b) of the EC Sixth VAT Directive. The Directive confers a wide discretion on member states to define further exclusions, provided the policy objective is consistent with the rationale of the exemption and the measure is reasonable. The UK's test of seasonality for caravan pitches is a reasonable way to identify holiday use and is not disproportionate or discriminatory under EU law.

Court Disposition

Appeal dismissed

Orders

  • No reference to the European Court of Justice is necessary.
  • The appeal is dismissed; the decision of the lower court is affirmed.