- JPMorgan Chase Bank NA provided various services to its UK affiliate, JPMorgan Securities plc.
- Both entities are part of the same UK VAT group.
- HMRC required VAT to be charged on these services due to a specific carve-out in the VAT Act.
- CBNA appealed HMRC’s VAT assessments, arguing for VAT exemption based on UK rules.
- HMRC contended the services were a single taxable supply without separate invoices.
- The First-tier Tribunal dismissed CBNA’s appeal, and CBNA appealed to the Upper Tribunal.
- The Upper Tribunal also dismissed the appeal.
- The Tribunal found the services to be a single supply of business operations support.
- The securities exemption did not apply as the services were administrative.
- The case highlights that VAT group status does not automatically exempt cross-border services from VAT.
- Businesses should ensure contracts and invoicing reflect the true economic substance to avoid VAT liabilities.
Source: rpclegal.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.
