David Jacobs UK Ltd v Revenue & Customs [2009] UKFTT 106 (TC) (18 May 2009)

David Jacobs UK Ltd v Revenue & Customs [2009] UKFTT 106 (TC) (18 May 2009)

The Appellant was entitled to deduct input tax on the purchase of the number plate because the purchase and intended sale constituted an economic activity within the meaning of VAT law. The transaction, though a one-off and outside the Appellant's usual business, was undertaken by a taxable person with the intention of resale, satisfying both the objective test under EU law and the nexus test under domestic law.

Citation
[2009] UKFTT 106 (TC)
Parties
Appellant: David Jacobs UK Ltd; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 May 2009
Procedural Posture
VAT Input Tax Appeal / First Tier Tribunal (tax), Final Decision
Outcome
Appeal allowed
Legal Topics
Input Tax Deductibility, Business Purpose Test, Economic Activity, Taxable Person, VAT Recovery
Tax Law VAT Input Tax Deductibility Business Purpose Test Economic Activity Taxable Person VAT Recovery

Case Brief

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Parties

David Jacobs UK Ltd

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether the purchase of a vehicle registration plate by the Appellant was for the purposes of its business and thus entitled to input tax deduction under VAT law.

Ratio Decidendi

The Appellant was entitled to deduct input tax on the purchase of the number plate because the purchase and intended sale constituted an economic activity within the meaning of VAT law. The transaction, though a one-off and outside the Appellant's usual business, was undertaken by a taxable person with the intention of resale, satisfying both the objective test under EU law and the nexus test under domestic law.

Court Disposition

Appeal allowed

Orders

  • Respondents to pay the Appellant its reasonable costs, to be fixed by a chairman sitting alone if not agreed.