Simmons & Simmons monthly contribution to Tax Journal analysing recent VAT developments.
This article was first published in the 05 July 2019 edition of Tax Journal who have agreed to Simmons & Simmons making it available on elexica.
This month’s update covers two recent decisions on the allocation of input VAT, which indicate the fact specific nature of any attribution enquiry. The case of Royal Opera House exemplifies how a narrow approach to attribution may fail to take into account the fact that costs are economically essential to wider business activities. Perhaps the most interesting aspect of The Glasgow School of Art v HMRC is the indication that a below market rent lease to the Student Union did not amount to an economic activity. Meanwhile, the government has revoked the VAT (Finance) (EU Exit) Order 2019, with a view to re-introducing the changes from a fixed date, expected to be 01 April 2020. Finally, further anti-fraud measures continue to be brought in by the government.
The VAT Review for July 2019 can be read here.
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