The First Tier Tribunal (FTT) has rejected the repayment claim from Julie Lalou and supported HMRC’s VAT assessment of £12,2038 for the accounting period 09-19 after it ruled that there was insufficient evidence to prove that the dog grooming courses should be exempt from VAT.

Lalou operated a dog grooming business that offered grooming courses as well as services. The business was registered for VAT and accounted for VAT at the standard rate of 20% for both supplies for over 10 years before considering that the grooming courses should be exempt from VAT.