It ruled that British Airways could recover VAT on food, paid for by BA, which was provided by airport food outlets to passengers on delayed flights stranded at airports.
Another House of Lords’ decision ruled that VAT was recoverable by a business which had a contract with a third party to make supplies to customers for which the business paid, where the contract was in the business’ interests.
Deloitte & Touche head of VAT Tony McClenaghan said: ‘This is good news for flight operators who have pre-arranged contracts with airport food outlets. Flight operators will benefit to the tune of hundreds of thousands of pounds.’
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