For some years now there has been spasmodic evidence of HMRC trying to disallow an element of input VAT recovery where income outside the scope of VAT (typically government grants) is linked to the acquisition of standard rated supplies. This can happen where a business incurs expenditure in order to secure a Countryside Stewardship Scheme (CSS), or in a non-agricultural context, where a charity receives substantial donation income which funds a business infrastructure project.
Source: icaew.com
Latest Posts in "United Kingdom"
- VAT Exemption for Temporary Medical Staff: HMRC Confirms Locum Doctors Qualify After Tribunal Decision
- Tribunal Rules 5% VAT Can Apply to Public EV Charging Under De Minimis Domestic Supply Limit
- Upper Tribunal Confirms VAT Due on Lycamobile Prepaid Bundles at Point of Sale, Dismissing Appeal
- Tribunal Rules Pre‑Registration VAT Recovery Based Only on Post‑Registration Use, Not Historic Use
- Recent HMRC Updates: VAT Export Rules, Reverse Charge for EV Charging, and New Customs Handbooks
