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QUBIC ADVISORY SERVICES LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2024] UKUT 00106 (TCC)


23rd April 2024


On 23 April 2024 the Upper Tribunal allowed the appeal of Qubic Advisory Services Ltd from the First-tier Tribunal on a preliminary issue concerning whether gold bullion that always remained in a vault was "delivered or available to be taken away".  Qubic's success on the preliminary issue led the  Upper Tribunal to set aside penalties of some £14 million which HMRC had imposed on Qubic.

 

Denis Edwards of Temple Tax Chambers represented Qubic in its successful appeal.

 

The appeal concerned the scope of VAT Notice 701/21 (Gold Imports and Exports) and the record keeping and invoice requirements concerning exempt supplies of investment gold.  Regulation 31A(1) of the VAT Regulations 1995 applied the requirements only where a supply of rights to investment gold "subsequently results in the transfer of the possession of the investment gold".  The VAT Notice provides that the requirements apply where investment gold is "delivered or otherwise made available" to the customer.

 

HMRC argued that the requirements applied where there was a right to possession of investment gold, even notionally.  The FTT agreed.  The Upper Tribunal allowed Qubic's appeal by reference to the relevant contractual documents.  The Upper Tribunal also observed that the VAT Notice cannot extend the scope of the record keeping and invoice requirements beyond the terms of regulation 31A of the VAT Regulations.

 

Read the full decision here: Qubic_Advisory_Services_UT_final_decision.pdf (publishing.service.gov.uk) 

 

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