- The Upper Tier Tribunal (UTT) overturned the First-tier Tribunal (FTT) decision in the case of Sonder Europe Limited (Sonder) v. HMRC.
- The UTT ruled that Sonder is not a “Tour Operator” for the purposes of the Tour Operators Margin Scheme (TOMS).
- The UTT found that Sonder’s long-term leases from third-party landlords were materially different from the short-term licenses to occupy granted to travelers.
- The UTT determined that Sonder was making non-TOMS supplies to travelers and therefore must account for VAT on the full selling price.
- The UTT disagreed with the FTT’s definition of “material alteration,” finding that the changes made by Sonder to the apartments were significant enough to constitute a material alteration.
- The UTT focused on the legal interest perspective, finding that the acquisition of an unfurnished apartment under a long lease was materially different from supplying a furnished apartment under a short-term license to occupy.
Source: claritastax.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.
