Uncertainty Looms Over Sonder Europe VAT Appeal as Industry Awaits Clarity on TOMS Scheme

• The Court of Appeal hearing for Sonder Europe Ltd is set for February 2026, but Sonder US’s Chapter 11 filing and funding uncertainties may affect the case.
• The main issue is whether serviced accommodation operators leasing properties for 2–10 years and reselling short-term licences can use the Tour Operators’ Margin Scheme (TOMS).
• The Upper Tribunal (UTT) ruled operators could not use TOMS due to material alteration and lack of direct benefit.
• The industry is concerned the appeal may be dropped, leaving the unclear UTT decision in place.
• If the case collapses, operators face ongoing uncertainty and may need to work collaboratively with HMRC.

Source: deeksvat.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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