V16.911 VAT—supplies of goods under finance agreementsInformation Sheet 5/06, March 2006This Information Sheet explains the changes announced in the Budget to close a loophole in the VAT treatment of goods sold, for a second time, by finance companies.1 IntroductionThis Information Sheet explains the changes announced in the Budget to close a loophole in the VAT treatment of goods sold, for a second time, by finance companies.VAT Information Sheet 5/04 set out the High Court judgment in General Motors Acceptance Corporation UK Ltd (CH/2003/APP/0230). In the light of this decision the Government has announced that the VAT (Cars) Order 1992 and the VAT (Special Provisions) Order 1995 are to be amended. The changes remove the entitlement of finance companies to treat returned goods as “neither a supply
Information Sheet 5/06, March 2006
This Information Sheet explains the changes announced in the Budget to close a loophole in the VAT treatment of goods sold, for a second time, by finance companies.
VAT Information Sheet 5/04 set out the High Court judgment in General Motors Acceptance Corporation UK Ltd (CH/2003/APP/0230). In the light of this decision the Government has announced that the VAT (Cars) Order 1992 and the VAT (Special Provisions) Order 1995 are to be amended. The changes remove the entitlement of finance companies to treat returned goods as “neither a supply
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