Revenue & Customs Brief 60/07

RBS Deutschland Holdings GmbH

The VAT and Duties Tribunal gave its decision in this case on 24 July 2007.

The Tribunal decided that a German leasing company which leased cars to United Kingdom customers and accounted for no output tax in Germany or the United Kingdom could nevertheless deduct input tax on the purchase of the cars, and that the arrangements were not an abusive practice.

HMRC believe that the case was not correctly decided and have accordingly appealed the Tribunal’s decision to the Court of Session.

Issued 11 September 2007