Hastings Insurance Services
Place of Supply - Right to deduct input tax
The appellant provided brokering services to a connected offshore provider of insurance 'A'.
The case would turn on where A was established in relation to the intermediary services it received from the appellant.
HMRC argued that 'A' had a fixed establishment (FE) in the UK as well as a permanent establishment (PE) in Gibraltar.
The appellant argued there was no FE in the UK.
In the event of the apellant beng correct, the appellant would be entitled to input tax recovery under the Specified Supplies Order 1999.
In the event th
at HMRC were correct the broking services would be exempt services supplied in the UK with the contingent impact of irrecoverable input tax.
The VAT legislation is not particularly clear on how to discern the presence of a FE.
Consequently, a lot of legal arguments were employed in trying to demonstrate that 'A' had (or didn't have) a sufficient degree of permanence; or the requisite human and technical resources required for it to receive and consume supplies within the UK.
Owing to a lack of space a more detailed analysis may be found
. However, in the event the Tribunal were not convinced that HMRC had demonstrated the existence of the FE.
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