A fundamental question of the nature of a supply for VAT purposes was again considered by the VAT tribunal.
British Airways operated a voucher system whereby a passenger whose flight was delayed could obtain free food from restaurants in the airside of the airport.
Customs argued that the restaurants were supplying the food to the passengers not to British Airways who had no control over what the passengers ordered, other than imposing a cash limit.
Customs lost this argument. The supply of a right to goods was to be treated as the same as the supply of the goods themselves. British Airways was awarded costs against Customs.
16446 British Airways plc v Customs and Excise [2000]
[2000]