International Antiques and Collectors Fairs Limited v The Commissioners for Her Majesty's Revenue & Customs, TC 04538
| Jurisdiction | UK Non-devolved |
| Judge | Peter KEMPSTER |
| Judgment Date | 15 July 2015 |
| Neutral Citation | [2015] UKFTT 0354 (TC) |
| Respondent | The Commissioners for Her Majesty's Revenue & Customs |
| Appellant | International Antiques and Collectors Fairs Limited |
| Reference | TC 04538 |
| Court | First-tier Tribunal (Tax Chamber) |
[2015] UKFTT 0354 (TC)
TC04538
Appeal number:TC/2013/4119
VAT – exemptions – land – Group 1 sch 9 VATA 1994 – fees charged to
exhibitors at antiques and collectors fairs
FIRST-TIER TRIBUNAL
TAX CHAMBER
INTERNATIONAL ANTIQUES AND COLLECTORS FAIRS LIMITED
Appellant
- and -
THE COMMISSIONERS FOR HER MAJESTY’S
REVENUE & CUSTOMS
Respondents
TRIBUNAL:
Judge Peter Kempster
Mr John Coles
Sitting in public at Priory Courts, Birmingham on 10 – 12 February 2015
Mrs Penny Hamilton of counsel, instructed by Baker Tilly, for the Appellant
Mr Sarabjit Singh of counsel, instructed by the General Counsel and Solicitor to
HM Revenue & Customs, for the Respondents
© CROWN COPYRIGHT 2015
DECISION
1. By a notice of appeal dated 12 June 2013 the Appellant ("the Company")
appealed to the Tribunal against a decision of the Respondents ("HMRC") dated 17
May 2013 ("the Disputed Decision") which concluded: 5
“[The Company is] making supplies of access to a
marketplace/exhibition along with advertising and other accompanying
services and this supply is not considered to be an exempt supply of a
licence to occupy land. As such, these services are standard rated for
VAT.” 10
Facts
2. As well as a bundle of documents we took oral evidence from three witnesses
for the Company: Mr Keith Harris (chairman), Mrs Rachel Everett (operations
manager) and Mr David Burns (Burns & Co, Certified Accountants), all of whom had
submitted formal witness statements. In cross-examination by Mr Singh for HMRC 15 Mr Harris clarified certain points made in his witness statement; with those
clarifications, we accept all the evidence of all the witnesses, which greatly assisted
the Tribunal in understanding the business operations of the Company. We make the
following findings of fact.
The Company’s business 20
3. The Company organises antiques and collectors fairs at a number of locations
in England:
(1) the Newark and Nottingham Showground ("Newark") – 6 fairs each year
(2) the South of England Showground, Ardingly ("Ardingly") – 7 fairs each
year 25
(3) the Royal Bath and West of England Showground at Shepton Mallet
("Bath and West") – 6 fairs each year
(4) Newbury racecourse ("Newbury") – 5 fairs each year
(5) RAF Swinderby ("Swinderby") – 6 fairs each year.
30 4. The Disputed Decision before the Tribunal concerns fees charged to exhibitors
who book spaces at the fairs run by the Company (“Exhibitors”). The Company has a
number of other streams of income from the fairs the VAT treatment of which is not
in dispute, it being accepted that these are all standard rated supplies: admission fees
charged to visitors to the fairs (both trade buyers and members of the public) 35 (“Visitors”); specific services to individual Exhibitors (such as hire of chairs and
tables); grants of trading concessions (eg catering and foreign currency exchange);
and (at some sites) access to third parties who provide shipping services to Visitors.
Approximately 76% of the Company’s revenues came from Exhibitors’ booking fees.
40
2
3
5. Although there are variations between the locations, the following types of
pitches are available to Exhibitors:
(1) Outside Pitches – These measure approximately 4 x 8 metres and are
marked out and numbered in paint. They are allocated before or on the day of
the fair. No power is supplied. 5
(2) Inside Stalls – Two types:
(a) Standard Stall - These measure approximately 8 x 6 feet and are
marked out and numbered in chalk or tape. One electrical power socket is
supplied, to be used only for lighting and limited to 300W; background
lighting is provided by the lights in the building. One standard size trestle 10 table is supplied; this is a means of controlling the amount of stock that an
exhibitor can display; stewards ensure Exhibitors remain within their
designated area and may direct Exhibitors to remove excess items.
(b) Furniture Pitch - These measure approximately 14 x 10 feet and do
not include a trestle table, although tables are available for separate hire 15 (when VAT is charged). Electricity supply is as for a Standard Stall.
(3) Marquees – These are covered outside pitches. To ensure compliance
with health & safety regulations the marquees are erected by an approved
supplier and have overhead lighting fitted by an approved contractor. The
Company orders the marquees and organises erection. A power point is 20 supplied.
(4) Shopping Arcades – These are long, thin marquees divided internally by
canvas walls into units measuring approximately 3 x 6 metres. Again, the
Company orders the marquees and organises erection. A power point (for
lighting) and two standard size trestle tables are supplied for each pitch. 25
6. The mix of pitches varies between locations but is approximately 38% Outside
Pitches and the remainder being the other types. The Company had approximately
20,000 Exhibitors each year.
7. Exhibitors are sent a Booking Pack for the coming year with details of all
forthcoming fairs, which sets out the Company’s standard terms and conditions. 30 Many Exhibitors like to rebook the same stand each fair, and there is a deadline for so
doing. It was permissible to book adjacent pitches. Some Exhibitors turn up on the
day of the fair (other than at Bath and West) and are allocated a “casual pitch”
according (and subject) to availability. Prices vary according to venue, facilities and
position - eg a corner pitch would attract a premium, being akin to a larger shop 35 frontage, as would a pitch fronting the main avenue or close to the main site entrance
(which would both attract greater footfall). At Bath and West most Exhibitors would
stay for the full three days of the fairs but at Newark, which are predominantly trade
fairs, only half would stay after the first day.
8. Before the event Exhibitors receive a vehicle pass (admitting one vehicle and 40 two people) and an information pack including a stallholder’s letter which details
timings, rules to be observed, and identifies the specific pitch allocated to that
Exhibitor. Exhibitor parking is on designated areas and if an Exhibitor required
additional space (eg for an especially large vehicle) then they would be expected to
pay extra. Exhibitors are allowed to stay on site overnight; there are toilet facilities 45 and some food outlets may remain open.
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