Able UK Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 24 November 2009
Neutral citation: [2009] UKFTT 323 (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 VAT exemption in Article 151(1)(c) of the VAT Directive for supplies to "armed forces" is limited to visiting NATO forces. The Tribunal held Article 151(1)(c) comprises three disjunctive exceptions and is not confined to visiting NATO forces, so the Appellant’s ship-dismantling services supplied to the US MARAD were exempt. The appeal was allowed and HMRC were ordered to pay the Appellant’s reasonable costs.
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
The Tribunal applied the ordinary and natural meaning of the Directive where purposive interpretation and extrinsic materials did not demonstrate a contrary legislative intent, holding that an exemption must be read strictly but not so as to import unstated limitations; the absence of an express restriction in Article 151(1)(c) (contrasted with an express restriction in Article 151(1)(e)) supports a non-limited meaning of "armed forces," so the dismantling services fell within the exemption.
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 treated the NATO Status of Forces Agreement relied on by HMRC as of limited weight and not shown to reflect the legislation's intent; it also noted the principle that Member States should not gain a fiscal advantage from NATO membership is consistent with, but does not narrow, Article 151(1)(c).
Warning
quality:contains_crown_copyright chunk is repetitive and contains formatting/noise; some passages are duplicated. Notes contain some repetition and formatting duplication but capture the key reasoning and outcome.