HMRC v RBS Deutschland Holdings GmbH raises the question of whether HMRC is right to focus on abuse of rights arguments to combat what it perceives to be unacceptable VAT planning. While we await the decision of the ECJ, the opinion of the Advocate-General in this case effectively supports the right of taxpayers to take advantage of the rules in different Member States, provided (crucially) that the arrangements are commercial. Perhaps the result of this case will weaken HMRC’s appetite to challenge VAT planning on the grounds in Halifax, but it will be a long wait to find out.
