The proposal for a cost sharing exemption is good news for the exempt and non-business sectors which could save £200 million or more VAT on shared services. In BAA, the Upper Tribunal held that a special purpose takeover vehicle could not recover input VAT incurred on its deal fees, although similar companies may be able to recover input VAT in the future with appropriate structuring. The VAT Implementing Regulation, which came into force on 1 July, clarifies the VAT package place of supply provisions. The Upper Tribunal in SRI International has clarified when an overseas trader will be entitled to claim a refund of VAT incurred in the UK under the Thirteenth VAT Directive.
