The VAT review for February 2023

This month’s VAT review covers the recent HBOS and Lloyds Banking FTT decision concerning the right to interest where a taxpayer was prevented from making a repayment claim due to defective UK legislation. There is the AG opinion in Finanzamt X v Y (or alternatively the German turkey barn case) that the fixed plant and machinery exclusion from the VAT exemption for lettings does not override the single supply principle. In P GmbH v Finanzamt Osterreich the CJEU has confirmed the AG’s somewhat surprising opinion that overcharged VAT on an invoice is not covered by article 203 where all the customers are final consumers. In A v Finanzamt M the CJEU has held that the Kittel principle justifies a denial of input VAT credit in its entirety even where the VAT lost to fraud is a lesser amount. Finally HMRC has published a statement of...