- Golf Holidays Worldwide Ltd operates the Tour Operator Margin Scheme (TOMS) and included wholesale supplies within TOMS.
- The company submitted a claim on the basis that those wholesale supplies should not have been within the scheme.
- HMRC rejected the claim, stating that no error had been made on the returns when TOMS accounting was adopted for wholesale supplies.
- Golf appealed, arguing that UK law excludes wholesale supplies from TOMS and requires a taxable person to apply the normal VAT rules.
- The FTT agreed with HMRC, stating that Golf had used a lawful option in accounting for VAT which they now realise was less advantageous than an alternative lawful option.
- Golf also argued that HMRC could not rely on the principle of direct effect.
Source KPMG
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