In Mr & Mrs Baldwin v HMRC (TC03615 – 23 May 2014) the FTT held that the place of supply of hotel accommodation to EU travel agents not established in the UK was the UK.Mr and Mrs Baldwin ran a hotel in the Isle of Wight.
Until the autumn of 2011 Mr and Mrs Baldwin’s returns were prepared on the basis that all their supplies of accommodation – whether directly to individuals or to travel agents established in the UK as well as abroad – were liable to VAT.
Following the receipt from HMRC of a request to complete an EC sales statement the Baldwins had thought that no VAT was due on supplies to travel agents established outside the UK. They were appealing against HMRC’s decision to impose VAT on these supplies.
The FTT observed that under both the Sixth Directive (art 47) and VATA...
