The characterisation test for VAT has received important clarification from the Court of Appeal, writes Michael Thomas KC (Pump Court Tax Chambers).
The fundamental issue in VAT is to determine the nature of the supply. The rules to establish whether the supply is taxable zero-rated or exempt as well as the place of supply all fall to be applied in light of that.
A significant amount of recent case law has focused on distinguishing single and multiple supplies. In Card Protection Plan Ltd v HMRC (Case C-349/96) (CPP) the CJEU made clear that there is a single supply where one or more elements are to be regarded as constituting the principal service whilst other elements are to be regarded as ancillary services which share the tax treatment of the principal service. In Levob Verzekeringen BV and another v Staatssecretaris van Financiën (Case C-41/04) the CJEU...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
The characterisation test for VAT has received important clarification from the Court of Appeal, writes Michael Thomas KC (Pump Court Tax Chambers).
The fundamental issue in VAT is to determine the nature of the supply. The rules to establish whether the supply is taxable zero-rated or exempt as well as the place of supply all fall to be applied in light of that.
A significant amount of recent case law has focused on distinguishing single and multiple supplies. In Card Protection Plan Ltd v HMRC (Case C-349/96) (CPP) the CJEU made clear that there is a single supply where one or more elements are to be regarded as constituting the principal service whilst other elements are to be regarded as ancillary services which share the tax treatment of the principal service. In Levob Verzekeringen BV and another v Staatssecretaris van Financiën (Case C-41/04) the CJEU...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
