Kingston Maurward College v Revenue and Customs (VAT - claim for credit for input tax) [2021] UKFTT 127 (TC) (7 April 2021)

Kingston Maurward College v Revenue and Customs (VAT - claim for credit for input tax) [2021] UKFTT 127 (TC) (7 April 2021)

Applying the reasoning in Colchester and Rayon D'Or, the tribunal found that the supplies without charge were made for consideration within Article 2(1) PVD, as there was a direct link between grant funding and the provision of education and training services. The tribunal rejected the argument that KMC's activities formed a single economic activity, finding insufficient evidence of integration between training and commercial activities.

Citation
[2021] UKFTT 127
Parties
Appellant: KMC; Respondent: HMRC
Jurisdiction
United Kingdom
Judgment Date
07 April 2021
Procedural Posture
VAT Appeal / Tribunal Judgment
Outcome
Appeal allowed in part
Legal Topics
VAT Consideration, Economic Activity, Public Funding, Education Services
Tax Law European Union Law VAT Consideration Economic Activity Public Funding Education Services

Case Brief

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Parties

KMC

Appellant

HMRC

Respondent

Procedural Posture

VAT Appeal / Tribunal Judgment

Legal Issues

  1. 1 Whether grant funding constitutes consideration for VAT purposes
  2. 2 Whether supplies without charge are made for consideration under Article 2(1) PVD
  3. 3 Whether KMC's activities constitute an economic activity under Article 9 PVD

Ratio Decidendi

Applying the reasoning in Colchester and Rayon D'Or, the tribunal found that the supplies without charge were made for consideration within Article 2(1) PVD, as there was a direct link between grant funding and the provision of education and training services. The tribunal rejected the argument that KMC's activities formed a single economic activity, finding insufficient evidence of integration between training and commercial activities.

Court Disposition

Appeal allowed in part

Orders

  • Supplies without charge are made for consideration under Article 2(1) PVD
  • KMC's activities do not constitute a single economic activity for VAT purposes