The CJEU’s judgment in the joined cases of Air France-KLM and Hop!-Brit Air SAS v Ministère des Finances et des Comptes publics (Cases C-250/14 and C-289/14) (‘KLM’) highlights the importance of focusing on contractual terms in determining whether or not a non-refundable payment for unused services is a taxable supply. Whilst considered in the context of airline ‘no-shows,’ this decision may have repercussions in a number of sectors where services are cancelled or unused after payment has been made, and advisers will need to carefully consider how the terms and conditions of sale are drafted.
The CJEU’s judgment in the joined cases of Air France-KLM and Hop!-Brit Air SAS v Ministère des Finances et des Comptes publics (Cases C-250/14 and C-289/14) (‘KLM’) highlights the importance of focusing on contractual terms in determining whether or not a non-refundable payment for unused services is a taxable supply. Whilst considered in the context of airline ‘no-shows,’ this decision may have repercussions in a number of sectors where services are cancelled or unused after payment has been made, and advisers will need to carefully consider how the terms and conditions of sale are drafted.