Commentary

BB/23B/98 Tribunal decision in Thorn plc—mobile telephones

Part V16 Forms and other HMRC material

BB/23B/98 Tribunal decision in Thorn plc—mobile telephones

BB/23B/98 Tribunal decision in Thorn plc—mobile telephones

Business Brief, Issue 23. 17 November 1998

Background

As part of a promotion aimed at existing customers of Radio Rentals (a company within the Thorn VAT group), Thorn supplied mobile telephones free of charge on condition that the customer took up an “air-time” agreement with the airtime supplier recommended by Thorn. Thorn received commission each time a customer signed such an agreement from the airtime provider.

The decision

The tribunal (Thorn plc v C & E Comrs (1997) VAT Decision 15284 unreported [Part V12]) found that consideration had been provided for the telephone. Firstly, the customer had

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