RCB/67/09 VAT—liability of property service charges following the European Court of Justice case of RLRE Tellmer (C-572/07)Revenue & Customs Brief, Issue 67. 27 October 2009This Revenue & Customs Brief sets out HM Revenue & Customs' (HMRC) view of the judgment of the European Court of Justice (“ECJ”) in the case of RLRE Tellmer (“Tellmer”) and confirms that the UK's current VAT treatment of service charges is unchanged following this decision. BackgroundThe issue was whether the leasing of apartments and the related cleaning of the common parts of the apartment building formed a single exempt supply by the landlord, Tellmer. Tellmer argued this was the case but the Czech authorities argued that the cleaning services amounted to a separate taxable supply. The ECJ agreed that in the circumstances of Tellmer, the cleaning services could be separated from the property rental as a separate
Revenue & Customs Brief, Issue 67. 27 October 2009
This Revenue & Customs Brief sets out HM Revenue & Customs' (HMRC) view of the judgment of the European Court of Justice (“ECJ”) in the case of RLRE Tellmer (“Tellmer”) and confirms that the UK's current VAT treatment of service charges is unchanged following this decision.
The issue was whether the leasing of apartments and the related cleaning of the common parts of the apartment building formed a single exempt supply by the landlord, Tellmer. Tellmer argued this was the case but the Czech authorities argued that the cleaning services amounted to a separate taxable supply. The ECJ agreed that in the circumstances of Tellmer, the cleaning services could be separated from the property rental as a separate
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