John Crawford reviews HMRC's new policy on the recovery of VAT on entertaining overseas customers
Readers will recall the December 2008 ECJ decision in Danfoss A/S and AstraZeneca A/S v Skattesministeriet (Case C-371/07) ([2008] SWTI 2788) which considered the issue of input VAT recovery in relation to business entertainment specifically in the context of whether national VAT policies in this area ran contrary to principles established in EU law. Revenue and Customs Brief 44/10 was issued at the beginning of November 2010 and confirms HMRC’s new policy as a result of this case with specific focus on the entertainment of ‘overseas customers’. In short policy in this area has been revised with the input VAT block being lifted. The Brief includes guidance on the tests to be applied to determine whether VAT recovery is permissible.
The two key questions
In considering whether there is any material...
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John Crawford reviews HMRC's new policy on the recovery of VAT on entertaining overseas customers
Readers will recall the December 2008 ECJ decision in Danfoss A/S and AstraZeneca A/S v Skattesministeriet (Case C-371/07) ([2008] SWTI 2788) which considered the issue of input VAT recovery in relation to business entertainment specifically in the context of whether national VAT policies in this area ran contrary to principles established in EU law. Revenue and Customs Brief 44/10 was issued at the beginning of November 2010 and confirms HMRC’s new policy as a result of this case with specific focus on the entertainment of ‘overseas customers’. In short policy in this area has been revised with the input VAT block being lifted. The Brief includes guidance on the tests to be applied to determine whether VAT recovery is permissible.
The two key questions
In considering whether there is any material...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
