Dave Taylor (Deloitte) considers the VAT position for new ‘buy now, pay later’ payment services and virtual currency offerings.
Covid-19 has accelerated the trend for consumers to increasingly digitise how they live work and play. In response web and app-based platforms fintechs traditional and high-growth retailers are all developing new ways to attract and retain consumer spending in this area through ‘buy now pay later’ and virtual currency offerings. In view of disputes over how payment services are treated for VAT purposes this article considers how these new market offerings fit into the wider VAT picture.
Case precedent
Over the last 25 years a number of cases have come before the UK and European courts seeking to clarify the nature of services that should fall under the exemption for payment transfer services (Directive 2006/112/EC article 135(1)(d)).
Sparekassernes Datacenter (Case C-2/95) (SDC)...
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Dave Taylor (Deloitte) considers the VAT position for new ‘buy now, pay later’ payment services and virtual currency offerings.
Covid-19 has accelerated the trend for consumers to increasingly digitise how they live work and play. In response web and app-based platforms fintechs traditional and high-growth retailers are all developing new ways to attract and retain consumer spending in this area through ‘buy now pay later’ and virtual currency offerings. In view of disputes over how payment services are treated for VAT purposes this article considers how these new market offerings fit into the wider VAT picture.
Case precedent
Over the last 25 years a number of cases have come before the UK and European courts seeking to clarify the nature of services that should fall under the exemption for payment transfer services (Directive 2006/112/EC article 135(1)(d)).
Sparekassernes Datacenter (Case C-2/95) (SDC)...
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