Where the chain of supplies was broken by an exempt supply, the taxpayer could not reclaim input VAT on supplies purchased in order to provide those exempt supplies. The supply of professional services to support the issuance of shares was exempt, and no VAT was reclaimable even though there were components which involved a non-exempt supply. The directness and immediacy of the connection was a matter of fact in each case.
Citations:
Times 16-Nov-2000, Gazette 23-Nov-2000
Jurisdiction:
England and Wales
VAT
Updated: 23 March 2022; Ref: scu.85668