A matter of timing: R (on the application of BMW AG) and others v HMRC
First published by De Voil Indirect Tax Intelligence, Issue 145, June 2008
The arrangements affected by the result of the BMW case are various, but in each case the cashflow benefit arises in the same way. Company A makes supplies to Company B. Company A must account for output tax on the supply to the Commissioners and Company B has a corresponding right to reclaim input tax.