Tenants of long lease where the landlord had elected to charge VAT, decided to seek sub-tenants. They delayed election themselves in order to assist such sub-tenants, but eventually waved their exemption and sought to reclaim the VAT paid to their own landlords. The commissioners objected. The deduction system was fundamental, and intended to relieve businesses of liability for the final responsibility for VAT, the payments which had been made were properly cost payments within the Directive, and the rentals could not be seen as a series of short lived inputs.
Citations:
Gazette 12-Oct-2000
Statutes:
VAT Regulations 1995/2518, Value Added Tax Act 1994
Jurisdiction:
England and Wales
Landlord and Tenant, VAT
Updated: 28 April 2022; Ref: scu.88885