In Gray & Farrar International LLP v HMRC [2023] EWCA Civ 121 (13 February 2023) the Court of Appeal (CA) found that a dating matchmaking service was not a supply of consultancy for VAT purposes. This meant the UK VAT would be due even when the services were supplied to customers outside the UK and EU.
The background to the case arises from the way the place of supply rules apply to certain services. Usually for services supplied to individuals the place of supply (and where VAT should be accounted for) is where the supplier is established. However under EU Principal VAT Directive article 59(c) ‘consultancy’ services (and similar services including data processing and the provision of information) are not subject to UK VAT if supplied to overseas clients (non-EU for the services under consideration in this appeal now non-UK applying the rules as...
