Finance And Business Training Ltd v Revenue And Customs

Finance And Business Training Ltd v Revenue And Customs

FBT is not entitled to the education exemption because, although it supplies educational services, it does not meet the EU law-compliant supplier condition as implemented by UK law. The UK has lawfully exercised its discretion under the Principal VAT Directive by limiting the exemption to colleges and halls integrated with universities. The criteria set out in Note 1(b) and the SFM factors are neutral, abstract, and defined in advance, satisfying the principle of legal certainty. FBT does not meet the required degree of integration or public interest element, and its exclusion does not breach fiscal neutrality or legal certainty under EU law.

Parties
Appellant: Finance and Business Training Limited; Respondents: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
19 January 2016
Procedural Posture
Civil Appeal (tax) / Appeal From Upper Tribunal Tax Chamber
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Education Exemption, Fiscal Neutrality, Legal Certainty, Direct Effect
Tax Law European Union Law VAT Exemption Education Exemption Fiscal Neutrality Legal Certainty Direct Effect

Case Brief

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Parties

Finance and Business Training Limited

Appellant

The Commissioners for HM Revenue and Customs

Respondents

Procedural Posture

Civil Appeal (tax) / Appeal From Upper Tribunal Tax Chamber

Legal Issues

  1. 1 Whether a provider of university courses not qualifying under UK VAT law is entitled to the education exemption from VAT under EU law principles, particularly fiscal neutrality and legal certainty.
  2. 2 Whether UK VAT legislation complies with EU law as interpreted by the CJEU in MDDP.

Ratio Decidendi

FBT is not entitled to the education exemption because, although it supplies educational services, it does not meet the EU law-compliant supplier condition as implemented by UK law. The UK has lawfully exercised its discretion under the Principal VAT Directive by limiting the exemption to colleges and halls integrated with universities. The criteria set out in Note 1(b) and the SFM factors are neutral, abstract, and defined in advance, satisfying the principle of legal certainty. FBT does not meet the required degree of integration or public interest element, and its exclusion does not breach fiscal neutrality or legal certainty under EU law.

Court Disposition

Appeal dismissed

Orders

  • FBT is not entitled to the education exemption from VAT for its university degree courses.
  • No reference to the CJEU for a preliminary ruling.