- Colchester College reclaimed £2 million in VAT on a campus redevelopment project in 2008
- College believed further education was exempt from VAT, submitted claim for repayment of balancing charge
- Upper Tribunal ruled College’s supplies were exempt, should not have applied Lennartz mechanism
- HMRC disagreed, assessed College for underdeclared output tax
- First-tier Tribunal allowed College’s appeal, HMRC likely to appeal to Upper Tribunal
- Decision in favor of College may impact further education sector’s access to VAT reliefs
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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