Barclays Service Corporation & Anor v The Commissioners for HMRC

For a UK branch of an overseas company to be a 'fixed establishment' under s 43A VATA, it must have a real trading presence, supply goods/services materially to its business, possess sufficient permanent resources, and have sufficient resources to receive necessary supplies.

HSBC Electronic Data Processing (Guangdong) Ltd v HMRC [2022] STC 367

In interpreting 'established' and 'fixed establishment' in s 43A VATA, the place of supply rules principles are relevant but not simply imported. The CJEU case law on these terms must be considered, along with case law outside place of supply rules.

HSBC Electronic Data Processing (Guangdong) Ltd v HMRC [2022] STC 367

A fixed establishment does not necessarily require its own human and technical resources; the taxable person must have comparable control over such resources.

Welmory sp z oo v Dyrektor Izby Skarbowej w Gda ń sku (Case C-605/12)

HMRC can refuse a VAT grouping application under s 43B(5)(c) VATA if refusal is 'necessary for the protection of the revenue'. The Tribunal will not overturn this unless HMRC could not reasonably have been satisfied there were grounds for refusal.

Value Added Tax Act 1994, sections 43B(5)(c) and 84(4A)

The 'protection of the revenue' test focuses on the reasonableness of the decision, not the process. All relevant circumstances can be considered, including legitimate expectations.

HSBC Electronic Data Processing (Guangdong) Ltd v HMRC [2022] STC 367

Counter-avoidance measures can be applied even without intent to obtain a tax advantage if the Member State deems the decrease in taxable amount unjustified.

Direct Cosmetics Ltd and Laughtons Photographs Ltd v Customs and Excise Commissioners [1988] STC 540

The purpose of VAT grouping is to simplify administration and combat abuse; this simplification extends to business organization, not just VAT accounting.

Lloyds Banking Group plc and others v HMRC [2019] STC 1134