1st Contact Ltd v Revenue & Customs [2012] UKFTT 84 (TC) (25 January 2012)

1st Contact Ltd v Revenue & Customs [2012] UKFTT 84 (TC) (25 January 2012)

The Tribunal found that the appellant's typical customer, during their working holiday in the UK, had a regular, habitual mode of life in the UK for a settled purpose (combination of work and travel), with sufficient continuity to be ordinarily resident in the UK for the relevant period. Therefore, they did not 'belong outside the member States' for the purposes of VAT input tax recovery under the 1999 Order.

Citation
[2012] UKFTT 84 (TC)
Parties
Appellant: 1st Contact Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 January 2012
Procedural Posture
VAT Input Tax Recovery Appeal / First Tier Tribunal (tax) Final Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Input Tax Recovery, Exempt Supplies, Usual Place of Residence, Foreign Exchange Services
Tax Law European Union Law VAT Input Tax Recovery Exempt Supplies Usual Place of Residence Foreign Exchange Services

Case Brief

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Parties

1st Contact Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Recovery Appeal / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether the appellant's customers 'belonged outside the member States' for the purposes of VAT input tax recovery under VATA 1994 and the 1999 Order
  2. 2 Interpretation of 'usual place of residence' under UK and EU VAT law

Ratio Decidendi

The Tribunal found that the appellant's typical customer, during their working holiday in the UK, had a regular, habitual mode of life in the UK for a settled purpose (combination of work and travel), with sufficient continuity to be ordinarily resident in the UK for the relevant period. Therefore, they did not 'belong outside the member States' for the purposes of VAT input tax recovery under the 1999 Order.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.