UK HMRC issued a brief on 2 September 2020 concerning the VAT treatment of early termination fees and compensation payments. Previously considered outside the scope of VAT, the paper provides that in light of certain EU court cases, such charges are considered within the scope of VAT, with related guidance updated accordingly.
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Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments
Purpose of this brief
To give an update on the VAT treatment of comp…