In Sonder Europe Ltd v HMRC[2023] UKFTT 610 (TC) (5 July 2023) the FTT held that the supply of apartments leased from landlords and used to provide short term accommodation to travellers fell within the scope of the VAT tour operator’s margin scheme (TOMS).
The appellant (Sonder) provided accommodation in the UK for corporate and leisure travellers in the form of self-contained apartments. These apartments had been leased from third-party landlords in return for annual rents. They were let to travellers for varying durations but averaging five days.
Some accommodation was leased furnished from landlords whilst other accommodation came unfurnished. Sonder made only cosmetic changes to the apartments before they were let out to travellers. These cosmetic changes were designed to align the apartments with the brand’s style. No structural changes were made. On occasion however minor decorating work was carried...
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In Sonder Europe Ltd v HMRC[2023] UKFTT 610 (TC) (5 July 2023) the FTT held that the supply of apartments leased from landlords and used to provide short term accommodation to travellers fell within the scope of the VAT tour operator’s margin scheme (TOMS).
The appellant (Sonder) provided accommodation in the UK for corporate and leisure travellers in the form of self-contained apartments. These apartments had been leased from third-party landlords in return for annual rents. They were let to travellers for varying durations but averaging five days.
Some accommodation was leased furnished from landlords whilst other accommodation came unfurnished. Sonder made only cosmetic changes to the apartments before they were let out to travellers. These cosmetic changes were designed to align the apartments with the brand’s style. No structural changes were made. On occasion however minor decorating work was carried...
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