- The Upper Tribunal (UT) upheld HMRC’s appeal, rejecting Boehringer Ingelheim Ltd’s (BIL) claim for a VAT rebate on most payments made to the Department of Health and Social Care (DHSC).
- The UT found that payments made under the schemes were not retrospective price reductions linked to specific supplies, but rather revenue levies, and thus fell outside the scope of Article 90 of the VAT Directive.
- The UT ruled that only in cases where medicines (such as vaccines) were supplied directly to DHSC, making DHSC the final consumer, could BIL adjust VAT; otherwise, no VAT adjustment was allowed for supplies to wholesalers or pharmacies.
- The First-tier Tribunal (FTT) had erred in law by misidentifying DHSC as the final consumer in most cases, so its decision was set aside.
Source: claritaxnews.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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