PARTIAL EXEMPTION ON CAR FINANCE FOR VOLKSWAGEN

摘要

THE COURT OF JUSTICE of the European Union (CJEU) has appeared to support the case of the tax payer in VW Financial Services (UK) C-153/17), though the language it deployed seemed somewhat tortuous at times. The dispute concerns the partial exemption method that best reflects the use of overhead costs in a business where the taxable supplies (of cars) involves a sale at cost price, and the exempt supplies (the 'finance' package) appear to make all the profits.