Tuesday 17 January 2023
By Appellant’s Notice filed on 14th February 2022, HMRC appeal the Upper Tribunal’s Order dated 24th November 2021.
Background – The Upper Tribunal decided that the Respondent’s services were “consultancy services… or similar services… and the provision of information” falling within Article 59(c) of Council Directive 2006/112/EEC (the Principal VAT Directive or ‘PVD’) and paragraph 16(2)(d) of Schedule 4A to the Value Added Tax Act 1994 (“VATA”) . On that basis, the UT reversed the decision of the First-tier Tribunal (Tax Chamber) released on 8th November 2019 and allowed the Respondent’s appeal. The significance of the UT’s decision is that it means that the place of the Respondent’s supply to a recipient outside the EU (who is not a relevant business person) is the country in which the recipient belongs, rendering that supply outside the scope of VAT.