Brief Notes
Noteworthy links, summaries and concise prose on stuff.

GST in Malaysia

All about Goods and Services Tax, as practiced and implemented in Malaysia.

Case studies

Apple’s commissionaire business structure in Europe and EU Value-Added Tax on apps

Firm wins VAT appeal: Fine Art Developments plc v Commissioners of Customs and Excise: Court of Appeal (Lord Justice Neill, Lord Justice Steyn and Lord Justice Peter Gibson), 20 May 1994:

The value added tax to be charged on the supply of goods by a mail order business to ‘agents’ who sold on some of the goods at a profit was to be calculated by reference to the value of the consideration received by the business from the agent and not by reference to the higher prices realisable on the agent’s sales.

HM Revenue & Customs v Prince Karunaraina Samarappulli Arachchige [2009] EWHC 1077 (Ch) (20 May 2009):

Mr Arachchige runs a shop at 192B West Hendon Broadway. Among the things that he sells in that shop are phone cards. He sells a variety of phone cards. Some provide cheaper calls to European destinations, others to Asian destinations and others to African destinations. They are bought by people who have relatives or contacts in those areas. The phone cards generally bear face values of £3 or £5. They are sold for their face value or a slightly lesser amount. Mr Arachchige buys each phone card for about 10p or 20p less than the amount for which he sells it. The vendors of the phone cards come to his shop every day. Mr Arachchige would accept a batch of cards and the vendor would return at the end of the day to collect monies equal to the agreed purchase price of the cards that had been sold. This issue on this appeal is the correct VAT treatment of Mr Arachchige’s supply of such cards.

Customs and Excise Commissioners Versus Fine Art Developments Plc. (extract):

Thereafter the Council granted an indefinite derogation (89/534/E.E.C.) in these terms:

“By way of derogation from article 11(A)(1)(a) of the Sixth Directive, the United Kingdom is hereby authorised to prescribe, in cases where a marketing structure based on the supply of goods through non-taxable persons results in non-taxation at the stage of final consumption, that the taxable amount for supplies to such persons is to be the open market value of the goods as determined at that stage.”

ECJ to consider VAT Treatment of Supplies to Unregistered Sellers