VAT briefing for March 2016

In Senatex, the AG opined that the right to deduct VAT arises at the time of supply, even where there are defects in the VAT invoice issued by the supplier. In Shop Direct, the Supreme Court held that the taxpayer was liable to corporation tax on the receipt of a repayment of overpaid VAT, even though the taxpayer was not the original trader and had acquired the repayment right under intra-group arrangements. In Temple Finance, the FTT held that intra-group supplies between associated companies were not charged at above or below open market value. In Norseman Gold, the UT held that a holding company could not recover VAT because its management services were not intended to be for consideration.