This month’s VAT review covers two cases, Lycamobile and Go City, which consider the argument (successful in Go City) that payments to acquire ‘credits’ to be redeemed in the future, are taxable only when and to the extent that they are later used. Barclays Services is an important case that considers arguments around HMRC’s ability to restrict VAT grouping of overseas entities with a UK fixed establishment. HMRC may have won this one on the facts, but the taxpayer was broadly successful on the wider arguments. Finally, the CJEU delivered its judgment in Joined Cases C-639/22 to C-644/22, confirming that a pension fund will only meet the investment risk requirement (so as to be comparable with UCITS) where that risk is of a nature comparable to the investment risk borne in a typical UCITS scenario.
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This month’s VAT review covers two cases, Lycamobile and Go City, which consider the argument (successful in Go City) that payments to acquire ‘credits’ to be redeemed in the future, are taxable only when and to the extent that they are later used. Barclays Services is an important case that considers arguments around HMRC’s ability to restrict VAT grouping of overseas entities with a UK fixed establishment. HMRC may have won this one on the facts, but the taxpayer was broadly successful on the wider arguments. Finally, the CJEU delivered its judgment in Joined Cases C-639/22 to C-644/22, confirming that a pension fund will only meet the investment risk requirement (so as to be comparable with UCITS) where that risk is of a nature comparable to the investment risk borne in a typical UCITS scenario.
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