Mr T Hovan v Commissioners for Her Majesty's Revenue and Customs
Decision date: 10 June 2010
Neutral citation: [2010] UKFTT 260 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned whether SMA (Leeds) Ltd's sale of a vehicle registration mark to a non‑EU buyer was a UK standard‑rated supply for VAT purposes. The Tribunal held the place of supply was the UK because the supplier belonged in the UK, that the transaction was not a transfer/assignment within Schedule 5, and that it did not qualify for zero‑rating under Group 7. The appellant's challenge was dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
For VAT place‑of‑supply purposes the Tribunal treated the supply as made in the UK where the supplier belongs; services consisting of transfers/assignments of rights fall within Schedule 5 but the sale of the registration mark in this case was not such a transfer/assignment; and intermediary services carried out by a UK intermediary are treated as carried out in the UK under the relevant Place of Supply Order provision.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal commented that the appellant had received poor and conflicting advice from HMRC and suggested HMRC should provide complaint information and web references; it also noted that the detailed contractual arrangements between SMA and the DVLA did not alter the VAT outcome in this case. These remarks do not form part of the binding decision.