The principle that VAT was reclaimable on the cost of acquiring a right later to purchase land to be used for VATable trade was applied to allow deduction of VAT on the cost of a study undertaken by a company in order to decide whether to commence an economic enterprise or not, even though it decided not to proceed and never made any taxable outputs.
Citations:
C-110/94, [1996] ECR I-857, [1996] EUECJ C-110/94, [1996] STC 569, [1996] CEC 490
Links:
Jurisdiction:
European
Citing:
Cited – Rompelman v Minister van Financien (Judgment) ECJ 14-Feb-1985
A trader who decided to acquire property for letting could claim repayment of VAT on the cost of a right to acquire a building which had not yet been constructed, let alone tenanted. . .
Cited by:
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.161334
