- Aspire in the Community Services Limited (ACSL) formed a VAT group with Aspire in the Community (ACL) and registered for VAT effective 1 May 2021.
- ACSL claimed VAT on pre-registration costs in its first VAT return, relying on legislation allowing such claims if certain criteria are met.
- HMRC limited the claim by considering both pre-registration (exempt) and post-registration (partly taxable) use of goods and services.
- ACSL argued, and the First-tier Tribunal agreed, that only post-registration use should determine the VAT claimable.
- The Tribunal upheld ACSL’s appeal, setting a precedent for at least seven similar appeals.
Source: taxscape.deloitte.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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