In 3D Crowd CIC v HMRC [2023] UKFTT 495 (TC) (12 June 2023) the FTT found that a business could only recover some of its input tax as the input tax that related to the giving away of free personal protective equipment (PPE) during the pandemic was not directly linked to a taxable supply.
In the early days of the pandemic there was an acute shortage of PPE equipment. A group of volunteers started a crowdfunding campaign to use 3D printers to produce protective face shields. The venture which was structured as a community interest company started small but very quickly expanded to the point at which at least half a million masks had been produced.
Although the initial plan was to sell the face shields it was not possible without BSI approval and a CE mark for the product. However given the main driver for...
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")