Why VAT Case Law May Help
Our clients often say VAT rules do not seem clear and HMRC guidance gives examples that do not exactly fit their situation. In these situations, EQ may look beyond the rules and refer to VAT cases that have been reported by the tax tribunals and courts. This can make the intention of legislation clearer and give specific guidance on how the rules should be applied.
How we helped our client
Our client, a property development company, sought our advice on the VAT status of their residential development where the VAT rules pointed to irrecoverable VAT that impacted on the cost of completed properties. We were asked for advice on whether there were any options available to reduce the VAT impact and make their properties more saleable. After review of VAT case law, we identified a similar situation in a recent VAT court report. We prepared a report for our client which detailed all the steps required to benefit from the VAT case and improve their development offering. In addition, using details from another VAT case, we highlighted potential pitfalls that they needed to be aware of.
For more information or to discuss further, please contact the VAT Taxperts.