VDT EXEMPTION – Insurance transactions – Appellant selling cars as independent dealer – Sales promotion for Northern Ireland – During sales promotion period ‘on-the-road’ price of car increased – Customer provided with free insurance for first year wholly paid for by manufacturer – Additional insurance for a further year procured from insurer by Appellant – Whether for purposes of calculating VAT on sales of cars amount paid by customer to be reduced by amount paid by Appellant for additional insurance – Whether Appellant making supplies of insurance – Yes – Whether supplies made for consideration – Yes – Whether supply ancillary to supply of car – No – Appeal Allowed – EC Council Directive 77/388, Art 13B(a) – VAT Act 1994, Sch 9, Gp 2, item 3
Citations:
[2005] UKVAT V18970
Links:
VAT
Updated: 30 June 2022; Ref: scu.225111
