Vehicle Control Services Ltd v Revenue and Customs Commissioners

Value added tax – Supply of goods or services. The Upper Tribunal (Tax and Chancery Chamber) held that, where purchased goods or services were used by a taxable person both for transactions in respect of which VAT was deductible and for transactions in respect of which VAT was not deductible, namely, where the transactions did not constitute economic activity or did not constitute taxable supplies, VAT could only be deducted in so far as it was attributable to taxable supplies.

Category: