Thursday, May 15, 2008
Car dealers avoid multi-million pound VAT bill
HMRC challenge stopped by tribunal
Car dealers have escaped a bill running into hundreds of millions of pounds following the outcome of an important VAT tribunal.
In the first case of its kind to reach tribunal, top 10 group Camden Motors successfully resisted Her Majesty’s Revenue & Customs’ challenge to the current system of VAT recovery.
HMRC had opposed motor retailers’ method of calculating how much VAT relates to exempt income, saying it should not be recoverable.
It said dealer groups should consider only the level of profit, rather than income, made by the exempt activities and compare it to profit generated from other activities.
DATED: 15.05.08
FEED: MT
Car dealers have escaped a bill running into hundreds of millions of pounds following the outcome of an important VAT tribunal.
In the first case of its kind to reach tribunal, top 10 group Camden Motors successfully resisted Her Majesty’s Revenue & Customs’ challenge to the current system of VAT recovery.
HMRC had opposed motor retailers’ method of calculating how much VAT relates to exempt income, saying it should not be recoverable.
It said dealer groups should consider only the level of profit, rather than income, made by the exempt activities and compare it to profit generated from other activities.
DATED: 15.05.08
FEED: MT
