United Utilities Plc v Customs & Excise

United Utilities Plc v Customs & Excise

The services provided by Vertex to Littlewoods are administrative and do not constitute the provision of betting facilities within the meaning of Article 13B(f) of the Sixth Directive or Item 1 of Group 4 of Schedule 9 to the VAT Act 1994. The exemption does not extend to agents providing only administrative support, as the rationale and wording of the exemption require involvement in core betting activities such as setting odds and controlling bets.

Parties
Appellant: United Utilities plc; Respondents: Commissioners of Customs and Excise
Jurisdiction
England and Wales
Judgment Date
08 March 2004
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat) Exemptions, Betting and Gambling Services, Agency Law, Interpretation of EU Directives
Tax Law European Union Law Value Added Tax (vat) Exemptions Betting and Gambling Services Agency Law Interpretation of EU Directives

Case Brief

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Parties

United Utilities plc

Appellant

Commissioners of Customs and Excise

Respondents

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the VAT exemption for betting and gambling under Article 13B(f) of the EC Sixth Council Directive applies to services provided by agents of companies offering betting facilities.
  2. 2 Whether administrative services provided by an agent (Vertex) to a bookmaker (Littlewoods) are exempt from VAT as the provision of betting facilities.

Ratio Decidendi

The services provided by Vertex to Littlewoods are administrative and do not constitute the provision of betting facilities within the meaning of Article 13B(f) of the Sixth Directive or Item 1 of Group 4 of Schedule 9 to the VAT Act 1994. The exemption does not extend to agents providing only administrative support, as the rationale and wording of the exemption require involvement in core betting activities such as setting odds and controlling bets.

Court Disposition

Appeal dismissed

Orders

  • No order for costs in the appeal
  • Order for costs in the High Court to remain undisturbed