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Agent versus principal

The courts continue to consider the VAT consequences of agent versus principal structures. Sarah Gallie (The VAT Consultancy) discusses.

Whilst VAT law is clear on the consequences of acting as an agent or a principal in the supply chain identifying the role a business plays continues to cause difficulties as is best illustrated by continued VAT litigation with two recent cases considering this: the First-tier Tribunal (FTT) case of United Carpets (Franchisor) Ltd [2025] UKFTT 895 (TC) and the Supreme Court in the regulatory case of DELTA Merseyside Ltd and another v Uber Britannia Ltd [2025] UKSC 31.

Many businesses may use the word ‘agent’ to describe how they operate. However for VAT purposes we must be clear as to whether the business is operating as a ‘disclosed’ or ‘undisclosed’ agent (or indeed as a principal). There are critical differences in the place of supply...

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