SCS The taxpayer, a German subsidiary of a UK bank, carried on a banking and leasing business in Germany. It did not have a place of establishment in the UK. It was registered in the UK for VAT as a non-established taxable person. It bought cars in the UK from an unconnected seller, and leased the cars back to the same group, with a put option requiring the cars to be bought back later. It paid VAT on the purchases but did not charge VAT on the leases. Under UK legislation the leases were treated as supplies made in Germany, and not subject to VAT in the UK, whereas under German law, having regard to the particular terms of the leases, they were treated as supplies made in the UK and therefore not subject to VAT in Germany. On the exercise of the put option, UK VAT was charged on the sale, but the taxpayer sought to deduct the input tax incurred on the purchase.
Judges:
Lord Clarke And Lady Dorrian And Lord Osborne
Citations:
[2006] ScotCS CSIH – 10
Links:
Jurisdiction:
Scotland
Citing:
At VDT (1) – RBS Deutschland Holdings Gmbh v Customs and Excise VDT 16-Nov-2004
VDT Application: Interlocutory Hearing – Jurisdiction – whether appeal raised in Edinburgh should be transmitted to London in respect that there was another connected appeal there – whether Appellants with . .
Appeal from – RBS Deutschland Holdings Gmbh v Revenue and Customs VDT 3-May-2005
VDT Applications – opposed motion to sist part of the proceedings in the appeal pending an ECJ Decision: Application for an order for disclosure of documents – necessity of documents, relevance to issue . .
Cited by:
At Inner House – RBS Deutschland Holdings Gmbh v Revenue and Customs VDT 24-Jul-2007
VDT VAT – deduction of input tax – leasing of cars within UK by German subsidiary company – cars purchased within UK, remaining there and subject to VAT in UK – leasing deemed to be supply of services in Germany . .
At Inner House – Commissioners for Her Majesty’s Revenue and Customs v RBS Deutschland Holdings ECJ 30-Sep-2010
ECJ Opinion – Interpretation of Article 17(3)(a) of the Sixth VAT Directive – Transactions carried out with the sole aim of obtaining a tax advantage – Provision of vehicle leasing services in the United Kingdom . .
At Inner House – Commissioners for Her Majesty’s Revenue and Customs v RBS Deutschland Holdings ECJ 22-Dec-2010
ECJ Sixth VAT Directive – Right to deduction – Purchase of vehicles and use for leasing transactions – Differences between the tax regimes of two Member States – Prohibition of abusive practices
‘taxable . .
Lists of cited by and citing cases may be incomplete.
VAT, European
Updated: 05 July 2022; Ref: scu.238710