In Lai’s v HMRC (TC03352 – 19 February 2014) the issue was whether the purchase of a boat had been made for the purpose of a business.
Under the Sixth VAT Directive (arts 167 and 169) a taxable person carrying on an economic activity is entitled to deduct input tax on goods used for the purposes of his taxed transactions.
As the owner of two racing boats (and a restaurant) Mr Lai had attended various P1 world championship power boats events and had come to the conclusion that these events represented a catering opportunity. He contended that he had purchased a third boat for this purpose in 2009.
The tribunal rejected the contention that securing catering contracts was Mr Lai’s principle intention when he purchased the boat. Although it accepted that Mr Lai had had in mind the possibility that...
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In Lai’s v HMRC (TC03352 – 19 February 2014) the issue was whether the purchase of a boat had been made for the purpose of a business.
Under the Sixth VAT Directive (arts 167 and 169) a taxable person carrying on an economic activity is entitled to deduct input tax on goods used for the purposes of his taxed transactions.
As the owner of two racing boats (and a restaurant) Mr Lai had attended various P1 world championship power boats events and had come to the conclusion that these events represented a catering opportunity. He contended that he had purchased a third boat for this purpose in 2009.
The tribunal rejected the contention that securing catering contracts was Mr Lai’s principle intention when he purchased the boat. Although it accepted that Mr Lai had had in mind the possibility that...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
