Another interesting case involving the British Film Institute has resulted in an excellent win for the taxpayer.
HMRC argued that the BFI’s sales of tickets to film screenings were not exempt under the special rules covering the provision of cultural services.
However, by focusing on the specific rules set out in the European Union VAT directive, the BFI was able to convince the tribunal of its entitlement to VAT exemption.
As a result, the BFI no longer has to charge VAT on tickets for film screenings.
Key messages: Always check out the EU position with regard to any VAT issue. Charities: are you sure you are getting the benefit of all available VAT reliefs?