The taxpayer which was based in Iceland sold an action day planner (ADP) in the UK through an Amazon platform. The product consisted of 16 pages of information about time management skills and a further 52 pages of double page planners intended to be completed with tasks and goals.
The taxpayer said the supplies of the planner were zero rated on the basis it was a book but HMRC considered it an item of stationery subject to VAT at the standard rate. It raised an assessment for the inaccuracy along with penalties.
The First-tier Tribunal allowed the taxpayer’s appeal concluding the planner had the physical characteristics of a book and its main function was to educate and inform users about time management and prioritisation skills. HMRC appealed. It said the decision in CCE v Colour Offset Ltd [1995] STC 85 was binding on the First-tier Tribunal...
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