There are provisions requiring car manufacturers to account for VAT on the deemed value of cars diverted from trading stock to other business use. The value at which they are deemed supplied for this purpose is 'cost'. General Motors (TC02835) argued that it had applied too high a value to match 'cost' whereas HMRC disagreed and refused a claim for overpayment. Following a 10-day hearing, supplemented by paper submissions, the tribunal drew conclusions on what the cost was, and the 70-page decision is a mine of factual information on GM's business and how to calculate cost for VAT purposes. It is more about fact than law, but is likely to be treated as precedent in future similar cases.
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