- 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
Source: rossmartin.co.uk
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.
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