The latest VAT developments that matter, reviewed by Gary Barnett and Heather Rowlands (Simmons & Simmons).
VAT grouping precludes separate supply analysis
In Virgin Media Payments Ltd v HMRC [2020] UKFTT 30 the FTT held that a payment handling fee charged by a VAT grouped subsidiary of the Virgin Media group could not be separated from the main supply of media services by the group. In those circumstances it was not possible to rely on the principle in Telewest [2005] STC 481 that supplies by different suppliers could not be treated as a single supply. Instead the services were treated as made by the representative member of the group and following the CJEU decision in Everything Everywhere Ltd (Case C-276/09) the payment handling service and media services formed a single indivisible economic supply that it would be artificial to split.
The decision which...
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The latest VAT developments that matter, reviewed by Gary Barnett and Heather Rowlands (Simmons & Simmons).
VAT grouping precludes separate supply analysis
In Virgin Media Payments Ltd v HMRC [2020] UKFTT 30 the FTT held that a payment handling fee charged by a VAT grouped subsidiary of the Virgin Media group could not be separated from the main supply of media services by the group. In those circumstances it was not possible to rely on the principle in Telewest [2005] STC 481 that supplies by different suppliers could not be treated as a single supply. Instead the services were treated as made by the representative member of the group and following the CJEU decision in Everything Everywhere Ltd (Case C-276/09) the payment handling service and media services formed a single indivisible economic supply that it would be artificial to split.
The decision which...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
