VAT comes back to haunt you
Elliott, Graham
VAT comes back to haunt you - 2005 - Estates Gazette (549) 10 December 2005, 86(1) .
Purchasers of commercial property commonly have problems with obtaining evidence of the vendor's right to charge VAT. This usually centres on the vendor's election to waive exception. There is relatively little clarification available from VAT tribunal decisions. Looks at "Marlow Gardner and Cooke Ltd Directors' Pension Scheme v HM Revenue and Customs Commissioners" ([2005] UKVAT V19326) and "Fencing Supplies Ltd" ([1993] VATTR 302, VAT Dec 10451). Highlights that vendors can waive exemption from VAT without knowing that they have done so, that an obligation to pay VAT may arise years after the purchase was finalised and that the distinction between making an election and notifying it is critical.
MARLOW GARDNER & COOKE LTD DIRECTORS PENSION SCHEME V REVENUE & CUSTOMS COMMISSIONERS
FENCING SUPPLIES LTD
VAT comes back to haunt you - 2005 - Estates Gazette (549) 10 December 2005, 86(1) .
Purchasers of commercial property commonly have problems with obtaining evidence of the vendor's right to charge VAT. This usually centres on the vendor's election to waive exception. There is relatively little clarification available from VAT tribunal decisions. Looks at "Marlow Gardner and Cooke Ltd Directors' Pension Scheme v HM Revenue and Customs Commissioners" ([2005] UKVAT V19326) and "Fencing Supplies Ltd" ([1993] VATTR 302, VAT Dec 10451). Highlights that vendors can waive exemption from VAT without knowing that they have done so, that an obligation to pay VAT may arise years after the purchase was finalised and that the distinction between making an election and notifying it is critical.
MARLOW GARDNER & COOKE LTD DIRECTORS PENSION SCHEME V REVENUE & CUSTOMS COMMISSIONERS
FENCING SUPPLIES LTD