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European Court of Justice releases its decision in the case involving MacDonald Resorts Ltd

RDO / Archived Articles  / European Court of Justice releases its decision in the case involving MacDonald Resorts Ltd
5 May 2011

European Court of Justice releases its decision in the case involving MacDonald Resorts Ltd

Brussels 20th December 2010  – The European Court of Justice has released its decision in the case involving Macdonald Resorts Limited (MRL) concerning the VAT treatment of points. The HM Revenue & Customs argued that the supply made by MRL was a supply of club membership and all points sales were subject to UK VAT. MRL argued that the supply of points was linked to immovable property and should be subject to VAT where the property is located.The decision is a win for MRL in that VAT should be accounted for by reference to the location of the accommodation rather than wholly in the UK. An added bonus however is the fact that the Court has ruled that VAT becomes due when points are redeemed rather than when points are sold.

 

MRL were advised by Paul Stewart of KPMG LLP and Paul has provided a summary of the case and what it means, which can be downloaded below. If you would like to discuss any aspect of the case please do not hesitate to contact Paul.

 

Paul Stewart
Director
KPMG LLP
Indirect Tax
St James Square
Manchester
M2 6DS

Direct line +44 (0) 161 246 4917
Mobile +44(0) 7801 522 308
Fax +44 (0) 161 246 4026

paul.stewart@kpmg.co.uk

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