- United Carpets introduced customers to independent carpet fitters but did not provide fitting services themselves; customers contracted and paid fitters directly.
- HMRC argued United Carpets was supplying a composite service (carpet plus fitting) and assessed VAT on the full value.
- The Tribunal found there were two separate contracts: one for goods (carpet) and one for services (fitting), with fitters being genuinely independent.
- United Carpets was not liable for VAT on fitting services, as they only introduced the parties and did not control or guarantee the fitting.
- The case highlights the importance of clear contracts and commercial reality in determining VAT liability.
Source: deeksvat.co.uk
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.
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