Contractual Terms Not Decisive for Identifying Supplier and Recipient in U.K. VAT Case, ECJ Says

The European Court of Justice on June 20 held in a U.K. VAT case that contractual terms may be taken into account but are not decisive for the purpose of identifying the supplier and recipient of a supply of services within the meaning of articles 2(1) and 6(1) of the Sixth VAT Directive.
The case, HM Revenue & Commissioners v. Paul Newey (C-653/11), focused on an offshore structure created by U.K. resident Paul Newey to mitigate the effect of irrecoverable input VAT incurred on advertising costs connected with his loan brokering business, which served U.K. customers.

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