Litigation Recent Decisions 13/06/95

VAT input tax on goods for business and entertainment

Thorn EMI v Customs and Excise Commissioners (1995). (CA (Stuart-Smith LJ, Hobhouse LJ and Millett LJ) 11/5/95).

Summary: Supplies which are made for both business and business entertainment qualify for partial input tax credit.

Commissioners of Customs and Excise Appeal from decision of Justice Turner (QBD (Turner J) 22/4/94; ILR 20/6/94) that the Value Added Tax (Special Provisions) Order 1981/1741 art.9 (1) excludes tax paid on goods supplied for business entertainment from qualifying for input tax credit and that on an indivisible supply of goods or services used both for business entertainment and to a measurable extent for other business purposes, the tax-payer was entitled to a partial credit on input value added tax on an apportionment between the entertainment and the other business uses.