UK Supreme Court Rules VAT Applicable on Success Fees After Exit from VAT Group

The UK Supreme Court ruled that VAT is applicable to success fees invoiced after a service supplier exits a VAT group. The chargeable event for the success fees occurred when the fund reached the contract’s hurdle rate, and the supplier was correct to add VAT to these invoices, even if the fees were earned years after the services were provided.

Source: news.bloombergtax.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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