- Littlewoods sought to recover input VAT on photography costs used for catalogues and its online store.
- HMRC denied full recovery, arguing the costs also supported exempt finance and insurance supplies, requiring apportionment.
- The Tribunal ruled in favor of Littlewoods, finding the photography costs were exclusively for taxable retail sales, not for exempt supplies.
- No restriction on input tax recovery was required as the link to exempt supplies was indirect or non-existent.
- The judge distinguished this case from previous cases, noting different circumstances and legal tests.
Source: marcusward.co
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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