06 August 2009
Revenue and Customs Commissioners v David Baxendale Ltd [2009] EWCA Civ 831, [2009] All ER (D) 359 (Jul)
The proper functioning of the VAT system required that single transactions should not be artificially split into separate supplies where to do so would not reflect the economic reality of the transaction.
The test was therefore that of economic indivisibility based on an objective view of the transaction from the consumer’s perspective.
