The taxpayer took in cars in part exchange at a cost higher than the re-sale value. The Commissioners sought to collect VAT on the higher price as shown in the agreements, and the tax payer on the actual value.
Held: Where the parties attributed a value to a car in a commercial agreement for commercial reasons, it was not open to the court to substitute its own judgment, and treat the extra value as a discount on the new car.
Judges:
Arden J
Citations:
Times 17-Oct-2000, Gazette 07-Sep-2000, [2000] STC 697
Jurisdiction:
England and Wales
Cited by:
Appeal from – Lex Services plc v Commissioners of Customs and Excise; Customs and Excise Commissioners v Littlewoods Organisation Plc CA 26-Oct-2001
The taxpayer took cars in part exchange on the sale of new cars. If the car was returned, the real value of the part exchange car was refunded. The taxpayer sought to be taxed on the real value of the car.
Held: The tax was payable on the . .
At first instance – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 04 June 2022; Ref: scu.83055
