- Court of Appeal dismissed Hippodrome Casino’s VAT appeal, upholding decisions by Upper Tribunal and HMRC regarding recovery of residual input VAT
- Casino argued for floor space method over standard turnover based method to calculate VAT deductions for mixed taxable and exempt activities like restaurants, bars and gambling
- HMRC rejected the proposed floor space override, stating it did not represent a more fair or reasonable result than the standard method
- Court affirmed that standard method is statutory default and taxpayers must demonstrate compelling evidence for alternative methods to be more precise
- Decision reinforces that partial exemption remains complex and courts reluctant to deviate from legislative defaults without strong justification across all business sectors
Source: xeinadin.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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