The case centred on the interpretation of specific rules of the sixth EU VAT directive concerning exemptions for cultural services.

HMRC had argued that the BFI was not exempt from VAT on supplies of right of admission – tickets – as it did not cover cinemas run by publicly-governed bodies.

In R & C Commrs v British Film Institute [2014] UKUT 0370 (TCC), the UT considered an appeal by HMRC against a decision of the First Tier Tribunal (FTT) that article 13A(1)(n) of Directive 77/388/EEC, the sixth VAT directive, had direct effect in providing exemption for certain cultural services.