- UK Funerals On-line (UKFO) repatriated bodies of deceased persons who wished to be laid to rest overseas
- UKFO obtained necessary forms, prepared the body for transport, obtained certificates, arranged the flight, and delivered the body to the airport
- HMRC considered UKFO’s services to be VAT exempt as arrangements for disposal of the dead
- The First-tier Tribunal agreed with HMRC’s decision
- The FTT also considered if the services qualified for zero-rating as arrangements for international transport of goods
- The FTT determined that the predominant part of UKFO’s services was specialist transport services
- Therefore, UKFO’s services also qualified for zero-rating
- When services qualify for both zero-rating and exemption, the zero rate applies
- UKFO’s appeal was allowed, and it could recover input tax on its costs.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
