In Marks and Spencer v HMRC [2019] UKUT 182 (27 June 2019) the UT agreeing with the FTT found that wine supplied ‘free of charge’ as part of a promotion was subject to VAT.
A promotion offered by M&S allowed a customer to choose three food dishes on payment of £10 and obtain a bottle of wine (or another non-alcoholic beverage) which was described as being provided ‘free’. Food items sold separately are zero rated for VAT but wine is standard rated. The issue was whether the £10 should be apportioned between the food and wine as HMRC contended or whether as M&S contended the wine was supplied free of charge.
It was accepted that the supply of wine would be effected for consideration only if there was a direct link between the goods provided and the consideration...
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In Marks and Spencer v HMRC [2019] UKUT 182 (27 June 2019) the UT agreeing with the FTT found that wine supplied ‘free of charge’ as part of a promotion was subject to VAT.
A promotion offered by M&S allowed a customer to choose three food dishes on payment of £10 and obtain a bottle of wine (or another non-alcoholic beverage) which was described as being provided ‘free’. Food items sold separately are zero rated for VAT but wine is standard rated. The issue was whether the £10 should be apportioned between the food and wine as HMRC contended or whether as M&S contended the wine was supplied free of charge.
It was accepted that the supply of wine would be effected for consideration only if there was a direct link between the goods provided and the consideration...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")