Commentary

V7.455 Case law example—agent or principal?

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.455 Case law example—agent or principal?

Part V7 Tax planning | Commentary

V7.455 Case law example—agent or principal?

It can sometimes be a challenge to identify whether a customer is dealing with the principal or agent in a transaction, ie to establish the output tax position.

The case of Joppa Enterprises Ltd [2009] STC 1279 was heard in the Scottish Court of Session and the judge upheld the decision of the VAT tribunal (case verdict delivered 6 March 2009).

The case concerned supplies involving a sauna (Joppa) and the self-employed masseuses of a venue based in Edinburgh. The customer would pay Joppa on arrival at the premises, and Joppa retained £5 of the payment

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