Matchmaking services provided outside of the UK and EU within the scope of VAT: Gray & Farrar International LLP [2023] EWCA Civ 121

The Court of Appeal (‘CoA’) has allowed an appeal from HMRC involving the application of an exception to the general place of supply rules for services of consultants as well as data processing and information sharing. The CoA found that the “predominant element test” applied by the Upper Tribunal (‘UT’) was a mandatory test but allowed the appeal from HMRC on the basis the approach by the First Tier Tribunal (‘FTT’) and UT involved an artificial dissection of the introduction services resulting in erroneous decisions.