THREE SHIRES TRAILERS LTD v Revenue & Customs (VAT - conversion of commercial vehicle to "car"-whether qualifying or non-qualifying car-self-supply-charge to output tax)

VALUE ADDED TAX-conversion of commercial vehicle to "car"-whether qualifying or non-qualifying car-self-supply-charge to output tax

For the Respondents: �� Mr Andrew Smith, litigator of HM Revenue and Customs' Solicitor's Office

             This is an appeal against HMRC's decision on 14 March 2022 to reduce the VAT repayment credit due on the Appellant's 08/21 VAT return as a result of an increase in output tax following the alleged self-supply of two Land Rover Discovery vehicles (the vehicles). The amount of the additional output tax is �22,497.66.

             HMRC's case was that the vehicles had been converted from commercial vehicles to non-qualifying cars which triggers an irreversible self-supply under Article 5 of the Value Added Tax (Cars) Order 1992 (the Order).

             The Appellant argues that the vehicles were not converted to cars, if they were cars, they were qualifying cars and if they were non-qualifying cars, the use was only temporary and they were converted back to commercial vehicles.