- UK First-tier Tribunal’s decision on VAT case has implications for multinational enterprises with UK operations
- Decision confirms possibility for branches of overseas companies to have fixed establishment and be part of UK VAT group
- Impact extends beyond UK to EU member countries with similar VAT systems
- Barclays Bank Plc’s appeal to add UK branch to VAT group was rejected by HMRC
- Tribunal concluded UK branch didn’t have required resources for fixed establishment
- Companies must ensure branches have adequate human and technical resources for fixed establishment
- Importance of evidence to support presence of resources at chosen date for VAT group application
- HMRC may challenge or deny VAT grouping requests if required substance for fixed establishment is not in place
- Advantages and disadvantages of forming a VAT group for multinational enterprises
Source: news.bloomberglaw.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.
