UT overturns FTT decision on TOMS application to Sonder Europe Ltd’s travel accommodation supplies

• Upper Tribunal allowed HMRC’s appeal from Sonder Europe Ltd v HMRC
• Sonder’s supplies of short-term travel accommodation did not fall within TOMS for VAT purposes
• Sonder leased apartments from third party landlords and granted licenses to occupy them
• HMRC contended that Sonder should account for VAT under ordinary rules at standard rate
• FTT initially held that TOMS applied and allowed Sonder’s appeal
• UT found FTT erred in law and mischaracterized nature of supplies
• UT emphasized the requirement that bought-in supply be for direct benefit of traveler

Source: monckton.com

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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