Mander Laundries
| Jurisdiction | UK Non-devolved |
| Judgment Date | 03 October 1973 |
| Date | 03 October 1973 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
Taxable supplies - Supply of laundering facilities in launderette - Whether fee for use of machine includes provision for supply of water, gas or electricity - schedule 4 group 2 schedule 4 group 7 schedule 4 group 7Finance Act 1972, Sch. 4, Grp. 2, item 1, Grp. 7, items 2, 5 (now schedule 5 group 2VATA 1983, Sch. 5, Grp. 2, item 1; schedule 5 group 7 schedule 5 group 7Grp. 7, items 2, 5).
The appellants ran a launderette where members of the public, for a charge of 20p, could wash clothes in a washing machine and dry them in a dryer. The machines variously used gas, water and electricity. The appellant contended that the charge for the use of the machines should be divided so that the amount referable to the provision of water, gas or electricity could be zero-rated.
Held, dismissing the taxpayers' appeal:
The provision of water, gas or electricity was an integral part of the supply of the facility to wash clothing, and was not separable from it.
[The Tribunal set out the facts summarised above and continued as follows.]
…
The question to be decided therefore is whether a percentage of the charge of 20p is not taxable as it relates to a supply of zero-rated goods, mainly water, gas and/or electricity. The same basic principle will apply to all the machines with varying percentages for the tumbler drying and ironing operations. The essential question is whether the whole of the 20p charge in respect of the supply described represents a charge for services and, therefore, is liable to VAT or whether there is a taxable hire charge … in respect of the washing machine operation, and an element of supply of zero-rated goods, which he puts at 70% in respect of the same operation, which will not be taxable.
…
… The Commissioners contended that … the electricity, gas and water in this case would be considered to be adjuncts to the use of the washing machines and that Mander...
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