VAT focus: Pactor Vastgoed – a possible challenge to the CGS

Gary Richards

Alan Sinyor

Following the recent decision in Pactor Vastgoed on the Dutch option to tax, Gary Richards and Alan Sinyor analyse the possible implication for the UK system, especially for those taxpayers who accounted for VAT under the capital goods scheme following the purchase of a property as a TOGC.

Pactor Vastgoed (C-622/11) a case that came before the CJEU on the intricacies of the Dutch option to tax might not sound to be of much significance to UK property owners.

On the contrary one reading of the CJEU’s judgment is that the UK capital goods scheme (CGS) may not operate as intended and so as a result taxpayers may have both statutory repayment claims and mistake-based restitution claims where property TOGCs have occurred.

The issues

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Pactor Vastgoed (C-622/11) a case that came before the CJEU on the intricacies of the Dutch option to tax might not sound to be of much significance to UK property owners.