VAT focus with Shimon Shaw, who looks at the long-running Aimia case
While being a reasonably straightforward tax in theory VAT often falls short when applied to real life situations. An example of this is the question of to whom a supply is being made. In most cases this is easy to determine but can be more complex when considering transactions with several parties.
An excellent example of this is the long-running VAT case regarding Nectar points (HMRC v Aimia Coalition Loyalty UK Ltd (formerly known as Loyalty Management UK Ltd) [2013] UKSC 15) which concluded last month with a win for the taxpayer.
While the Nectar scheme is well known readers may be less familiar with the scheme’s inner workings summarised below. There were a number...
