VAT Due on Services Invoiced After Supplier Left VAT Group: CoA Decision 2024

VAT was due on services provided between two companies in the same VAT group
Services were not invoiced or paid until after the supplier had left the group
Prudential and Silverfleet Capital Ltd were involved in the case
Performance fees of £9 million triggered in 2014 and 2015
HMRC argued for VAT to be charged on the performance fee when invoiced and paid
FTT initially ruled in favor of Prudential, but Upper Tribunal allowed HMRC’s appeal
Court of Appeal ultimately found that VAT was chargeable on the services
Deemed supply was made after Silverfleet had left the VAT group
Prudential’s appeal was dismissed on a 2-1 majority in the CoA

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.