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Was VAT Only Due On ‘Commissions’ Received Or The Full Value Of The Sale?

By Andrew Needham, February 2019

This was an appeal by the taxpayer against an assessment by HMRC for underdeclared output tax. 
 
HMRC assessed the appellant for over £900,000 on 100% of the sums of money it had received from students/clients whereas the appellant contested that VAT was only due on the commissions it received. In the alternative, the appellant argued that the assessment had been wrongly calculated as a number of clients were from outside the EU.  
 
The appellant’s business was essentially Internet-based. The appellant traded under various names, one of which was ‘UK Essays.com’, and those who would like to have an essay, dissertation or piece of coursework written for him/her could go onto the appellant’s website.  
 
The First-tier Tribunal (FTT) saw a hard copy of the website and was able to see that a potential client could choose a particular kind of service

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