This month’s review by Katie Oliver and Gary Barnett (Simmons & Simmons) covers the Supreme Court decision in Target Group, the CJEU ruling on ‘free gift’ promotions, the potential use of split payments in the collection of VAT and the draft legislation intended to ensure stability on the interpretation of VAT and excise laws.
Narrow functional interpretation of VAT finance exemption necessary
In Target Group Ltd v HMRC [2023] UKSC 35 the Supreme Court confirmed that the VAT exemption for payments and transfers must be given a narrow interpretation requiring the relevant services to have the effect of both transferring funds and changing the legal and financial situation of the relevant parties. It is not sufficient that a person gives instructions to a financial institution to make a payment or transfer even if it is necessary and even if that payment occurs automatically as a result of...
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This month’s review by Katie Oliver and Gary Barnett (Simmons & Simmons) covers the Supreme Court decision in Target Group, the CJEU ruling on ‘free gift’ promotions, the potential use of split payments in the collection of VAT and the draft legislation intended to ensure stability on the interpretation of VAT and excise laws.
Narrow functional interpretation of VAT finance exemption necessary
In Target Group Ltd v HMRC [2023] UKSC 35 the Supreme Court confirmed that the VAT exemption for payments and transfers must be given a narrow interpretation requiring the relevant services to have the effect of both transferring funds and changing the legal and financial situation of the relevant parties. It is not sufficient that a person gives instructions to a financial institution to make a payment or transfer even if it is necessary and even if that payment occurs automatically as a result of...
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:
