COS VAT is a colloquial term used to describe the VAT incurred by public bodies who contract out for service provision. This case concerned an assessment made against Milton Keynes Hospitals NHS Foundation Trust (The Trust), by HMRC, relating to VAT which the Trust had claimed under special rules applying to certain bodies including NHS Trusts. The FTT upheld HMRC’s assessment and this is an appeal against the FTT decision. The point at issue was whether HMRC is entitled to recover this COS VAT under s73 of the VAT Act 1994, which allows HMRC to raise assessment for input VAT that has been incorrectly claimed.
Source: constablevat.com
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