Cases - Hostgilt Ltd v Megahart

Record details

Name

Hostgilt Ltd v Megahart

Date

[1999]

Citation

STC 141

Legislation

Value Added Tax Act 1994

Keywords

Value added tax - contract - term that sum payable exclusive of VAT - whether VAT chargeable - whether VAT to be added on to agree contract price

Summary

This case held that a clause in a contract stating that sums payable were exclusive of VAT was to have the effect that if VAT did become chargeable, it would have to be added onto the price agreed in the contract. Conversely, if VAT was not specifically mentioned, and was due, then the price would be VAT-inclusive.