This case deals with the principle of fiscal neutrality. People who lead normal, balanced lives rarely encounter the exhilarating topic of fiscal neutrality. For the humble VAT practitioner, it is part of the staple diet. For fiscal neutrality is a cornerstone on which the VAT system is built.
In simple terms, fiscal neutrality means that similar supplies should be taxed similarly. In the Rank case, the Court held that VAT exemption granted by the UK to certain forms of gambling could not be denied to gaming on one kind of machine where it clearly applied to gaming on a different kind of machine. In this case, the machines were so similar that the player could not tell the difference.
So, should certain services supplied by a physical therapist be taxable, when similar services supplied by a physiotherapist are exempt? If you need help in navigating the choppy waters of fiscal neutrality, give us a call.