The VAT review for December 2022

This month’s VAT review covers the Supreme Court decision in NHS Lothian Health Board which emphasises the taxpayer’s responsibility to show that they had incurred recoverable input VAT and to adequately quantify of the amount of that input VAT even in historical cases stretching back to the 1970s. The decision of the CJEU in GE Aircraft Engine Services Ltd has taken a restrictive approach to the application of the deemed supply rules in relation to free awards provided by a business to incentivise employees disregarding the advocate general’s opinion. In HUMDA the CJEU has confirmed that the application of the Reemtsma principle to a situation where VAT was overcharged due to the incorrect application of the place of supply rules. And finally two recent CJEU cases analyse the scope of the Kittel anti-tax evasion principle. In both cases the CJEU refused to extend the principle...