Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Supreme Court judgment in Target

15 April 2024 / Roberto van Meurs ACA CTA , Fabian Barth
Issue: 4932 / Categories: Comment & Analysis , CJEU , UK VAT , VAT
168469
Missing the Target

Key points

  • The Target appeal concerned the application of the VAT exemption for payment services. It is relevant for all setups where elements of a transfer of money are performed.
  • The outcome introduces a risk of inefficiencies in the financial system.
  • Extending the exemption to all tasks which are operative and substantial causes of a payment may be a better solution.
  • Taxpayers could invite the higher courts to make use of their expanded power to depart from CJEU precedent under the provisions of the Revocation Act 2023.

The VAT exemption for payment services has kept the courts busy for more than two decades. Codified in VATA 1994 Sch 9 group 5 item 1 its scope has largely been inherited from evolved assimilated case law (as retained Court of Justice of the EU case law is now called). Last year the Supreme Court seized the opportunity to...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

back to top icon