Single / Multiple Supplies Flashcards
What is the significance of the Card Protection plan case?
It established the test for single/multiple supplies. Need to consider how the typical customer would view the supply.
CPP provided an assistance package for customers in the case of loss of personal items e.g. credit card, keys etc. They provided an insurance-backed indemnity for fraudulent use of the cards etc.
The question was whether this was a single supply (admin or insurance) or multiple supplies.
Held to be an exempt supply of insurance services and ancillary administration services.
Describe the weight watchers case?
WW enrolled customers in a programme in which they attempted to lose weight, encouraged by regular meetings.
Enrolment cost £9 and meetings cost £4.95, each included the provision of printed matter.
The COA adopted the CPP tests:
1. Look at the transaction from the typical point of view of the customer, not the supplier
2. The extent of the link between the supplies when considered from an economic point of view.
The court asked whether it would be artificial to split the transactions into separate supplies, the judgement found that it would be artificial. Held to be a single taxable supply of weight management services.
Describe the British Sky Broadcasting Group PLC case [1999]
A company supplied satellite broadcasting services to subscribers. It provided subscriber’ with a magazine providing details of the programmes which it broadcast.
HMRC ruled that the whole of the subscriptions were for standard rated supplies of broadcasting services
The company appealed, contending that part of the subscription should be attributed to zero rated supplies of magazines
The tribunal held that the true nature of the contract between the company and the subscribers was the company was making single supplies of broadcasting services
What is the significance of the Telewest case [2005]
Telewest changed their business structure following the British Sky Broadcasting case by incorporating a separate company to supply the zero rated magazines.
HMRC issued a ruling that in reality the magazines were still being supplied by Telewest and were part of a single standard rated supply.
The court held in favour of Telewest, it could not be a single supply because the customer could enter into one transaction without the other. Customers were contractually bound in separate contracts.
HMRC then changed the legislation in 2011 to counter this, preventing zero rating where the supply would be regarded as a single supply if supplied by the same person.
Only applies where the printed matter is supplied in connection to a supply of services.
What is the significance of the Virgin Media [2020] case?
A monthly handling charge of £5 was charged to customers who did not pay by direct debit
This was part of a single taxable supply of cable tv, broadband etc and was not an exempt supply of dealing in money
What is the significance of the Levob case?
The case concerned the importation of goods (software/disk) purchased in conjunction with customisation of the software
Levob treated these as separate supplies of goods and services
It was held a single complex supply that it would be artificial to split. The goods element was so insignificant they lost their identify so there was a supply of services.
Established the test of whether parts of a supply are ancillary
What is the significance of the Honourable Society of Middle Temple case?
Water (zero rated) supplied with a room that was rented (standard rated) was held to be an indispensable part of a standard rated lease
What is the significance of the Mesto Zamberk case?
The primary and mandatory test for determining the liability of a single complex supply is based on identifying the predominant element
