In HMRC v General Motors [2015] UKUT 605 (17 November 2015) the UT upheld the FTT’s finding that General Motors (GMUK) was entitled to a repayment of VAT overpaid on deemed self-supplies.
During the relevant years (1987 to 1996) a car manufacturer in the UK that took a car which it had manufactured into use in its own business (to be used as demonstrator cars press cars etc.) was treated for VAT purposes as making a ‘self-supply’ of the vehicle (VAT (Cars) Order SI 1992/3122). GMUK had made a claim for repayment of overpaid VAT (VATA 1994 s 80) on the basis that the cost of the cars had been less than (the previously agreed) two thirds of the list price. The issue was therefore for what consideration those deemed supplies should be treated as having been made. Under the Sixth VAT Directive article...
