The advocate general has suggested that the UK approach to supplies under an HP contract, allowing a split between exempt finance and taxable goods, is incompatible with EU VAT law. The Irish (and other member states’) approach to the recoverability of input VAT on share acquisitions has also been called into question by the advocate general. Recent UK cases concern the VAT treatment of loan servicing, the correct approach to customer loyalty scheme redemption payments and whether goods provided free under a retailer promotion are really ‘free’ for VAT purposes.
