- Sonder Europe Limited leased apartments for short-term accommodation
- First-tier Tribunal ruled that Sonder’s services were subject to VAT under TOMS
- Upper Tribunal upheld HMRC’s appeal, stating that TOMS did not apply
- EU Principal VAT Directive and Value Added Tax (Tour Operators) Order 1987 requirements for TOMS to apply
- UT found FTT error in not considering services bought by Sonder for direct benefit of travellers
- UT determined that services supplied by Sonder were not for direct benefit of customers
- Sonder’s services were not considered onward supplies under TOMS, but ‘in-house’ services
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.
