- UK Court of Appeal’s decision in Hotel La Tour has dashed hopes of recovering VAT on deal fees in share sales
- Hotel La Tour sought to recover VAT on marketing, legal, and accountancy fees related to share sale for fundraising
- First-tier and Upper Tribunals accepted argument, but Court of Appeal did not recognize a rule for VAT recovery
- Court of Appeal stated VAT can only be recovered if there is a direct link to taxable output transactions or economic activity
- Possibility of rift between UK and EU case law on VAT due to interpretation of CJEU’s decision in SKF
- Decision may lead to further litigation to determine recoverability of VAT on deal fees
Source: europeantax.blog
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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