Sonder Europe Ltd has leased self-contained apartments on an annual basis from third-party landlords. If necessary, Sonder installs furniture beds, sofas, lamps, etc. (two-thirds of the apartments are unfurnished). Sonder then markets the apartments as short-term accommodation (the average customer stays for five nights). The First-tier Tribunal has ruled that Sonder’s services should be subject to VAT under the tour operators’ margin scheme.
Source: deloitte.com
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