Input tax – Taxpayer claimed refund of input VAT on the basis that taxable supplies were made to the taxpayer – Whether an ‘economic activity’ was carried out – Taxpayer not entitled to refund of input VAT – appeal dismissed – Penalties for inaccurate returns – appeal dismissed – penalties reduced to careless inaccuracies.
We agree with HMRC that Y4 is not eligible for a refund of input VAT in relation to Colemead Ltd, Pat Ning Man or Yodel and we dismiss the appeal in respect of all periods.
For the avoidance of doubt, we dismiss the appeal of Y4 relating to the assessment of VAT of £116 in respect of the VAT period 05/16.
We agree that HMRC was correct to charge penalties. We have reduced the penalties charged to careless inaccuracies in respect of Colemead and Pat Ning Man and in respect of Yodel.
Source: bailii.org
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