Recent VAT decisions on card handling fees, single supply determinations and fixed establishments are reviewed by Joao Martinho and Gary Barnett (Simmons & Simmons).
VAT and card handling fees
In SilverDoor v HMRC [2024] UKUT 147 the Upper Tribunal (UT) confirmed that a fee charged by a property intermediary ostensibly for payment by corporate credit card was properly treated as consideration for a standard rated supply of reservation services.
SilverDoor operated as a property agent on behalf of property owners. It took bookings from customers arranged for payments and charged the property owners a commission. SilverDoor also had terms and conditions for customers making reservations of properties which provided for an additional fee of 2.95% of the accommodation charge where customers paid using a corporate credit card.
SilverDoor did not account for VAT on the additional 2.95% fee contending that it was an exempt...
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Recent VAT decisions on card handling fees, single supply determinations and fixed establishments are reviewed by Joao Martinho and Gary Barnett (Simmons & Simmons).
VAT and card handling fees
In SilverDoor v HMRC [2024] UKUT 147 the Upper Tribunal (UT) confirmed that a fee charged by a property intermediary ostensibly for payment by corporate credit card was properly treated as consideration for a standard rated supply of reservation services.
SilverDoor operated as a property agent on behalf of property owners. It took bookings from customers arranged for payments and charged the property owners a commission. SilverDoor also had terms and conditions for customers making reservations of properties which provided for an additional fee of 2.95% of the accommodation charge where customers paid using a corporate credit card.
SilverDoor did not account for VAT on the additional 2.95% fee contending that it was an exempt...
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:
