A partnership which provided golfing tuition, and was challenging HMRC's decision that a freelance who supplied lessons on the firm's behalf was liable for VAT on those services, has lost its appeal against the decision of the Upper Tribunal.

The case concerns the firm, Marcus Webb Golf Professional (MW), which employed Mr West who was not a member of the partnership and who provided golfing tuition to clients on a freelance basis, as well as providing lessons to his own list of clients.

HMRC conceded that golfing tuition came with the scope of VAT exemption for education services, and agreed that when West was supplying tuition to his own list of clients, with appointments and fees set by him, then there was no VAT charge on those services.

However, HMRC argued that this was only the case when West was supplying tuition 'privately' and that this exemption did not apply when he was supplying tuition on behalf of MW, since the firm was responsible for setting both appointments and fees.

HMRC's view was upheld at an Upper Tribunal hearing in October 2012. MW sought to appeal against this ruling, arguing that the principle of fiscal neutrality was infringed by the different treatment of what are essentially identical supplies.

The Court of Appeal has now ruled that EU law is clear and has been correctly applied. If a teacher provides tuition on behalf of another taxable body, the teacher does not provide it privately, that is on his own account and at his own risk.

In this case, the tuition was not provided by West on his own account, because he provided it on behalf of MW, so the Court of Appeal held that a further appeal has no prospect of success.