- Motorplus Ltd sought to recover input VAT on payments to suppliers who believed their supplies were VAT exempt.
- HMRC rejected the claim, citing a precedent where both parties believed supplies were exempt at the time.
- Motorplus appealed, and HMRC attempted to have the appeal dismissed, claiming it had no chance of success.
- The First-tier Tribunal found that Motorplus always believed the supplies were standard rated and allowed the appeal to proceed.
- The case highlights the need for HMRC to thoroughly analyze the nature of supplies before making decisions.
Source: rpclegal.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.
Latest Posts in "United Kingdom"
- VAT Beginner’s Guide: Essential Basics for UK Business Registration and Rates
- When Do You Have to Charge Yourself VAT? Key Situations Explained
- Supreme Court Clarifies VAT Group Rules and Time of Supply Interplay
- Isle of Wight NHS Trust vs HMRC: VAT Exemption Dispute on Locum Medical Practitioners
- HMRC Guidance: How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)
