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High Court Rules in Favor of Hotelbeds: Alternative Evidence Valid for VAT Deduction

  • The High Court ruled in favor of Hotelbeds UK Ltd against HMRC regarding VAT deductions without invoices.
  • Hotelbeds provided alternative evidence for VAT recovery, which HMRC initially accepted but later rejected.
  • The court found HMRC’s refusal flawed, citing failure to assess VAT neutrality and misapplication of policy guidance.
  • Hotelbeds demonstrated good faith efforts to obtain invoices and adopted the Tour Operators’ Margin Scheme to resolve future issues.

Source: deeksvat.co.uk

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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