The Court of Appeal upheld an earlier decision that Mayflower was able to
reclaim a proportion of VAT charged on the cost of hosting theatrical
productions.
The decision is expected to enable theatres to increase the level of claims
for VAT previously overpaid, and could reduce the cost of productions in the
future.
'Whilst the High Court agreed with Mayflower, the scope of the Court of
Appeal’s judgment means that many similar businesses will be entitled to seek a
refund of previously overpaid VAT from HMRC,' said
Deloitte
indirect tax director Simon Baxter.
He said it presented a broader opportunity for UK theatres and other
organisations to reclaim a 'significant' amount of VAT.
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