A recent Court of Appeal judgment has narrowed the VAT payments exemption. Richard Iferenta and Anthony Harb (KPMG) assess the impact and call on the government to widen the scope of the UK’s exemption for the post-Brexit world.
The VAT exemption for payment services has been challenging for many years. HMRC initially adopted an onerously restrictive interpretation until the defining judgment of the UK Court of Appeal (CA) in C&E Commrs v FDR Ltd [2000] EWCA Civ 216 (FDR) which confirmed that the scope of the exemption was much wider than the previously adopted position. FDR was then implemented into legislation and reflected in HMRC guidance. Since then though there has been a clear narrowing of the exemption by European case law. This has now been followed by the UK in the CA’s recent judgment in Target Group Ltd v HMRC [2021] ECWA Civ 1043 (Target). In...
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:
A recent Court of Appeal judgment has narrowed the VAT payments exemption. Richard Iferenta and Anthony Harb (KPMG) assess the impact and call on the government to widen the scope of the UK’s exemption for the post-Brexit world.
The VAT exemption for payment services has been challenging for many years. HMRC initially adopted an onerously restrictive interpretation until the defining judgment of the UK Court of Appeal (CA) in C&E Commrs v FDR Ltd [2000] EWCA Civ 216 (FDR) which confirmed that the scope of the exemption was much wider than the previously adopted position. FDR was then implemented into legislation and reflected in HMRC guidance. Since then though there has been a clear narrowing of the exemption by European case law. This has now been followed by the UK in the CA’s recent judgment in Target Group Ltd v HMRC [2021] ECWA Civ 1043 (Target). In...
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:
.tmb-editorspic.jpg?sfvrsn=c9a7a0cc_1)
