In the Courts - Value added tax
VAT appeal success for animal rehoming centre
The VAT and Duties Tribunal has ruled that VAT did not have to be charged by an animal rehoming centre when they sold animals placed within their care on to new owners; a decision that affects all animal welfare shelters throughout the UK. The key lay in the conclusion that the animals were ‘donated goods’ in that they were ‘transferred for no consideration’ and thus met the requirements of zero rating in item 1, group 15, sch.8 of the VAT Act 1994. This concluded a dispute that had been raging since the Gablesfarm Dogs and Cats Home was assessed for £14,285 in unpaid VAT on 22 April 2005. The Tribunal also found that the animal home’s sales of dogs brought to them by the Council’s warden did not take place a result of a contract with Plymouth City Council and the provisions of the contract did not affect the zero rating of the animals.
There are no comments on this article. Be the first to comment.