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Mine's a treble

04 July 2007 / Neil Warren
Issue: 4115 / Categories: Comment & Analysis , VAT
NEIL WARREN considers practical VAT issues arising from supplies involving three different parties.

Key points * In a three-way transaction the person who receives the supply is key. * A business which incurs an expense cannot necessarily claim input tax on it. * VAT treatment of employee expenses

A BUSINESS DEAL between two parties A and B is often straightforward. A business deal that involves a third person to become A B and C can often produce complications and in the VAT world complications often mean that A B and C will become C C and C … confusion court cases and contradictions (or should that be C C C and C?).
It is interesting that in the last few months there have been high profile court cases relating to both output tax and input tax issues that have involved three parties in a business...

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