This blog is a follow-up to our recent blog on HMRC’s surprising Changes to VAT and Early Termination Payments. As we noted, HMRC’s updated guidance is proving to be highly controversial. What’s happened? Folks are unhappy because the updated guidance treats contract termination payments (including for breach or withdrawal or under liquidated damages clauses) as … Continue Reading
Following the recent decision of the Court of Justice of the European Union in Meo (C-295/17) and a related case, HM Revenue & Customs (“HMRC”) has updated its guidance on the VAT treatment of contractual compensation payments for early termination of commercial contracts. Such payments, irrespective of whether described as compensation or liquidated damages, will … Continue Reading
