Julie Park considers why we continue to struggle with the question of whether a business is acting as an agent or a principal
The regular stream of cases considering the issue of whether a business is acting as agent or principal for VAT purposes continues with the Upper Tribunal and First-tier Tribunal decisions being released in two high-profile cases from different industries recently – namely Secret Hotels 2 Ltd (formerly Med Hotels Ltd) FTC/56/2010 and Reed Employment Ltd (LON 2004/0130).
The VAT legislation is clear on this issue – where a business is acting as an agent or intermediary ie on behalf of a principal there are clearly defined place of supply rules depending...
