Gary Barnett and Bryn Reynolds (Simmons & Simmons) cover a number of decisions which indicate the existence of a separate but parallel universe of VAT.
Intra-group VAT services and the time of supply rules
How do you reconcile the application of two deeming provisions within the VAT legislation when there is no explicit order of priority? That is essentially the problem that faced the Upper Tribunal in The Prudential Insurance Company Ltd v HMRC [2023] UKUT 54 when deciding if a performance fee from a taxpayer to the representative member of its VAT group was subject to VAT when the criteria triggering the performance fee was not fulfilled until a point significantly after it had left the VAT group and considerably after the cessation of services in a real-world context. Transactions within a VAT group are deemed not to give rise to supplies but on the other hand the time of...
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Gary Barnett and Bryn Reynolds (Simmons & Simmons) cover a number of decisions which indicate the existence of a separate but parallel universe of VAT.
Intra-group VAT services and the time of supply rules
How do you reconcile the application of two deeming provisions within the VAT legislation when there is no explicit order of priority? That is essentially the problem that faced the Upper Tribunal in The Prudential Insurance Company Ltd v HMRC [2023] UKUT 54 when deciding if a performance fee from a taxpayer to the representative member of its VAT group was subject to VAT when the criteria triggering the performance fee was not fulfilled until a point significantly after it had left the VAT group and considerably after the cessation of services in a real-world context. Transactions within a VAT group are deemed not to give rise to supplies but on the other hand the time of...
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