Binder Hamlyn
| Jurisdiction | UK Non-devolved |
| Judgment Date | 21 June 1983 |
| Date | 21 June 1983 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
Output tax - Services supplied by firm in Scotland to company in Jamaica - Whether services supplied to person with a business establishment or some other fixed establishment in the United Kingdom - section 8A schedule 4 group 9Finance Act 1972, sec. 8A, Sch. 4, Grp. 9, item 6 (now section 8 subsec-or-para (2) schedule 5 group 9VATA sec. 8(2), Sch. 5, Grp. 9)
The appellants were a firm of chartered accountants carrying on business in Glasgow. They were assessed in respect of tax due on services provided by them to a company called Jamaica Sugar Estates Ltd. which was incorporated in Scotland and registered in Jamaica for the purposes of company taxation. It had no employees or property in Scotland. The appellants made all of the returns required by law to the Registrar of Companies on behalf of the company, arranged for the Annual General Meetings to be held in Glasgow and maintained the share register there. The company had its registered office at the appellants' office, but had no right to enter the appellants' premises without their consent. The appellant charged the company fees for their services, and contended that these fees were zero-rated as they were supplied to a person who had no business establishment or fixed establishment in the United Kingdom.
Held, dismissing the taxpayers' appeal:
1. The company's registered office was not a business establishment but "some other fixed establishment".
2. The company was to be treated as belonging in Scotland and Jamaica and the fees were correctly standard-rated.
[The Tribunal set out the facts summarised above and continued as follows.]
schedule 4 group 9Schedule 4, Grp. 9, item 6(a) to the Finance Act 1972 (as amended) provides for the zero-rating of the supply to a person who belongs in a country, other than the Isle of Man, which is not a member state of the European Economic Community ofinter alia services comprised in schedule 2A subsec-or-para 3Sch. 2A, para. 3 of the said Act (as amended), which includes the services of accountants. Under section 8A subsec-or-para (3)sec. 8A(3) of said Act a person is:
treated as belonging in a country if-
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(a) he has there a business establishment or some other fixed establishment and no such establishment elsewhere; or …
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(d) he has such establishment both in that country and elsewhere, and he is the recipient of the services, and the establishment of his at which, or for the purpose of which...
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