Where a part or whole of a business was sold as a going concern, not all the VAT on the expenses of the sale was to be set off against VAT. The entire amount of VAT could only be set off where the assets sold were sold as a properly identifiable part of the taxable person’s economic activity. There had to be a direct link between the VAT costs on the acquisition of the items later sold. The sale of the business was not a sale utilising the assets purchased.
Citations:
Times 13-Mar-2001, [2001] STC 297, C-408/98, [2001] 1 WLR 769, [2001] EUECJ C-408/98
Links:
Statutes:
Value Added Tax (Special Provisions) Order 1995 (1995 No 1268), Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes
Jurisdiction:
European
Cited by:
Cited – Commissioners of Customs and Excise v Royal and Sun Alliance Insurance Group Plc CA 9-Oct-2001
The respondent sought to deduct input tax from income it received from lettings. It had previously occupied the buildings itself making exempt supplies, but then let them. They later waved their exemption, and sought to deduct input tax for periods . .
Cited – Royal and Sun Alliance Insurance Group plc v Her Majesty’s Commissioners of Customs and Excise HL 22-May-2003
The landlord had elected to waive exemption to charging VAT on its lettings. The tenant relet the demised premises, but at first without charging VAT. It later charged VAT on the sublease, but the commissioners objected to the attempt of the . .
Cited – Commissioners for Customs and Excise v Southern Primary Housing Limited CA 18-Nov-2003
The land owner had elected to pay VAT on the purchase of land. It sought to recover that VAT. The Commissioners appealed an order allowing that.
Held: Ther were three transactions, the purchase, the sale, and a development contract. The input . .
Cited – Revenue and Customs v Frank A Smart and Son Ltd SC 29-Jul-2019
The question was whether a taxpayer can deduct as input tax the VAT which it has incurred in purchasing entitlements to an EU farm subsidy, the Single Farm Payment. The taxpayer had used those entitlements to annual subsidies over several years and . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 17 April 2022; Ref: scu.162535
