‘This appeal concerns the way in which VAT on supplies to a business, which itself makes both supplies subject to VAT and supplies exempt from VAT, is to be apportioned where the inputs are not directly attributable to either the business’s taxable or exempt supplies alone but are attributable to both. In technical terms, it concerns the circumstances in which the taxpayer can establish that, rather than the standard method of attribution, which is based on the relative contribution to turnover of the different business activities, the attribution of residual input tax should be based on an alternative method, a Partial Exemption Special Method (‘PESM’).’
Judges:
Ward, Etherton, Pitchford LJJ
Citations:
[2011] EWCA Civ 1323, [2011] BVC 406, [2011] STI 3187, [2012] STC 388
Links:
Jurisdiction:
England and Wales
VAT
Updated: 06 February 2022; Ref: scu.448405