In the first of a new monthly series, Greg Sinfield and Lee Squires examine the latest VAT developments that matter, which this month include the consultation on the cost sharing exemption, the decision in BAA Ltd, and the Implementing Regulations
On 28 June HMRC issued a consultation document inviting comments on how the VAT cost sharing exemption could be implemented in the UK.
The exemption allows businesses and organisations making VAT exempt and/or non-business supplies to form groups to supply services to each other without VAT thus achieving cost savings and economies of scale.
The consultation period ends on 30 September 2011.
The cost sharing exemption is contained in Article 132(1)(f) of the VAT Directive (formerly...
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")