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Commercial reality trumps service agreement terms for VAT purposes (Agilisys and InHealth v HMRC)

Commercial reality trumps service agreement terms for VAT purposes (Agilisys and InHealth v HMRC)
Published on: 04 May 2016
Published by: LexisPSL
  • Commercial reality trumps service agreement terms for VAT purposes (Agilisys and InHealth v HMRC)
  • Original news
  • What was this case about?
  • What did the FTT decide?
  • Approach to construing the contract
  • Construing the service agreement
  • Factors outside the written contractual arrangement
  • What should tax lawyers take note of?

Article summary

Tax analysis: The First-tier Tax Tribunal (FTT) found that a written service agreement did not reflect the commercial reality of the relationship between the parties and that the VAT treatment should follow the commercial reality and treat the recharge of joint employment costs as a disbursement outside the scope of VAT. or take a trial to read the full analysis.

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