- The Tribunal ruled that VAT on product-specific photography used in catalogues and online stores by Littlewoods Limited is fully recoverable and does not need to be apportioned between taxable and exempt supplies.
- The photographs were found to be used exclusively for displaying retail products for sale, not for promoting financial or insurance services.
- The proximity of credit and insurance information on the website did not make the photography costs attributable to exempt supplies.
- The appeal was allowed, permitting full VAT recovery on the photography costs.
- The case highlights the ongoing complexity and legal debate around VAT cost attribution for partially exempt businesses.
Source: saffery.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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