This was an appeal in respect of a repayment claim by the Appellant, for VAT of £102,216.77 for the period from January 2008 to December 2011. The Appellant claimed that this was incorrectly charged in respect of services rendered by it to the colleges of further and higher education which formed it. The Appellant accessed grant-funding from the EU and other sources for the group of colleges rather than the individual colleges, each providing this service internally (which would not represent a taxable supply) as it was more practicable and economic that one external entity should provide this to members of the group. The Appellant, which is a company limited by guarantee, was set up for this purpose.

This service becomes exempt from if the criteria set out in Schedule 9, Group 16 VATA 1994 are met. In particular did each member make ‘exact reimbursement of its share of the joint expenses’, and