Key points
- Difference between compensation and consideration.
- In Société thermale, the CJEU found there was no link between the deposit paid and service to the customer.
- A right to benefit from services can be a supply of services.
- HMRC changed its policy on the treatment of hotel deposits.
- Case law and the contract are important when deciding whether a payment is consideration or compensation.
Source: taxation.co.uk (subscription needed)
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