Joao Martinho and Gary Barnett (Simmons & Simmons) examine recent developments in the VAT world, including a CJEU decision which appears to extend the MEO/Vodafone Portugal treatment of contractual termination payments to similar damages payments.
Early termination of contracts VAT and damages
Following the CJEU decisions in Vodafone Portugal (Case C-43/19) and MEO (Case C-295/17) HMRC published guidance on the correct VAT treatment of payments made on early contractual termination in Revenue & Customs Brief 2/2022. This guidance takes the position that most contractual termination payments and early termination fees will now be subject to VAT whether or not they have been described as compensation or liquidated damages on the basis that they amount to additional consideration for the underlying supply.
The CJEU has now added a third case in rhtb: project gmbh v Parkring 14-16 Immobilienverwaltung GmbH (Case C‑622/23) to this jurisprudence which may take...
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Joao Martinho and Gary Barnett (Simmons & Simmons) examine recent developments in the VAT world, including a CJEU decision which appears to extend the MEO/Vodafone Portugal treatment of contractual termination payments to similar damages payments.
Early termination of contracts VAT and damages
Following the CJEU decisions in Vodafone Portugal (Case C-43/19) and MEO (Case C-295/17) HMRC published guidance on the correct VAT treatment of payments made on early contractual termination in Revenue & Customs Brief 2/2022. This guidance takes the position that most contractual termination payments and early termination fees will now be subject to VAT whether or not they have been described as compensation or liquidated damages on the basis that they amount to additional consideration for the underlying supply.
The CJEU has now added a third case in rhtb: project gmbh v Parkring 14-16 Immobilienverwaltung GmbH (Case C‑622/23) to this jurisprudence which may take...
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:
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