Reviewing the impact of Astra Zeneca UK Ltd v HMRC
On 29 July the European Court of Justice (ECJ) delivered its judgment in Astra Zeneca UK Limited v HMRC (Case C-40/09). The reference to the ECJ was for a preliminary ruling on the VAT implications of an employer issuing to its employees vouchers with a cash value exchangeable for goods or services at certain well-known retailers in return for the employees giving up part of their remuneration (a salary sacrifice). The ECJ’s ruling that the remuneration given up constitutes consideration for the issue of the vouchers giving rise to a VAT liability for the employer has important implications for employers running similar schemes.
Previous law and practice
Where goods or services are provided to employees for their private use for free there is a supply deemed to be made equal to the cost to the employer...
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Home >Articles > Astra Zeneca and supplies of vouchers to employees
Astra Zeneca and supplies of vouchers to employees
Reviewing the impact of Astra Zeneca UK Ltd v HMRC
On 29 July the European Court of Justice (ECJ) delivered its judgment in Astra Zeneca UK Limited v HMRC (Case C-40/09). The reference to the ECJ was for a preliminary ruling on the VAT implications of an employer issuing to its employees vouchers with a cash value exchangeable for goods or services at certain well-known retailers in return for the employees giving up part of their remuneration (a salary sacrifice). The ECJ’s ruling that the remuneration given up constitutes consideration for the issue of the vouchers giving rise to a VAT liability for the employer has important implications for employers running similar schemes.
Previous law and practice
Where goods or services are provided to employees for their private use for free there is a supply deemed to be made equal to the cost to the employer...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
