Court case in the UK of 8 October 2018.
Facts (simplified):
Loughborough Students Union (LSU) operates a range of commercial activities on the campuses of the University and Loughborough College, mainly bars and catering but also three retail outlets.
The shops are open at least five days per week during term time. Although most of the customers are students, there is no restriction on others using the shops; there is no distinction at point of sale between student and non-student sales. One of the College campus shops sells art materials.
The LSU appealed against a decision to deny its claim for repayment of output tax in respect of sales of stationery, art materials and other items from the shops which LSU operates on campus. LSU argued that the sales were exempt supplies for VAT purposes and that those supplies had mistakenly previously been treated as standard rated.
Decision:
The Court dismissed the appeal, ruling that LSU’s activities were not VAT exempt, as they are not “closely related” to educational services.
Source: gov.uk
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