- Sonder Europe Limited leased apartments for short-term accommodation
- First-tier Tribunal (FTT) ruled Sonder’s services were subject to VAT under TOMS
- Upper Tribunal upheld HMRC’s appeal, stating TOMS did not apply
- TOMS requires supply acquired by travel agent to be for direct benefit of traveler
- FTT decision based on Sonder not altering or processing apartments
- Upper Tribunal found FTT in error, services not for direct benefit of travelers
- UT considered services supplied by Sonder were materially altered from those supplied by landlords
- Sonder’s services were not onward supplies, but ‘in-house’ services outside TOMS
Source: taxscape.deloitte.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.
Latest Posts in "United Kingdom"
- New Updates on Correcting VAT Errors: Key Changes and Guidance for Businesses
- Tribunal Rules on VAT Status of Government Grants for Free Educational Services by Colleges
- Colleges Win £2.8 Million Tax Rebates Amid VAT Rule Dispute with HMRC
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
