In Magic Memories Group Ltd v HMRC (TC03107 – 6 December 2013) Magic Memories sold photo-books to visitors at tourist attractions in the UK and argued that those photo-books qualified for zero-rating (VATA 1994 Sch 8 Group 3 item 1).
Photographs were taken at the entrance to the attraction the photo-books containing the photographs and information about the attraction were then offered for sale to the visitors at the exit.
HMRC argued that Magic Memories supplied photographic services which were standard-rated. The tribunal found that as there was no contract between the visitor and Magic Memories until the visitor agreed to buy a photo- book the supply consisted of the photo-book.
HMRC’s second argument was that even if the appellant’s supplies were supplies of goods they were predominantly supplies of photographs which were standard-rated. The tribunal held that it would be artificial to split...
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