- HMRC rejected Barclays Service Corporation’s (BSC) bid to join a UK VAT group, arguing it was neither established nor had a fixed establishment in the UK, and that revenue protection would justify refusal anyway.
- Barclays said BSC should be allowed in because it was under common control with the group and had a UK fixed establishment, which would eliminate reverse charge VAT costs on intragroup services.
- The case concerns whether a non-UK company’s UK branch can make it eligible for VAT grouping under section 43A VATA 1994, especially after the CJEU’s Danske Bank judgment.
- The First-tier Tribunal decided BSC did not have a fixed establishment in the UK.
- The appeal to the Upper Tribunal focused on the fixed establishment issue and, alternatively, whether HMRC could refuse grouping to protect the revenue.
Source: ey.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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