The UT dismissed the appeal and reaffirmed that input tax is recoverable in these circumstances. In particular, the UT considered Kretztechnik C-465/03, in which the CJEU confirmed that it was possible to recover input tax as a general overhead in circumstances where that input tax had been incurred in relation to a transaction which was outside the scope of VAT. The CJEU applied the principle of fiscal neutrality to conclude that if a taxpayer is able to deduct input tax in relation to transactions which are outside the scope of VAT (such as share issues) they should also be able to deduct input tax in relation to exempt supplies (such as share sales).
Source: rpc.co.uk
Latest Posts in "United Kingdom"
- Isle of Wight NHS Trust Wins Appeal: Locum Doctor Supplies Exempt from VAT
- Call to Remove VAT on Sunscreen Amid Rising Skin Cancer Rates in Wales
- HMRC Releases New Guidelines on Freeports Compliance and Tax Benefits
- High Court Rules in Favor of Hotelbeds: Alternative Evidence Valid for VAT Deduction
- UK Supreme Court Rules Uber Must Pay VAT on Private Hire Services, Impacting Industry
