Macdonald Resorts Ltd v HMRC

In Macdonald Resorts Ltd v HMRC (ECJ Case C-270/09) a Scottish company sold ‘timeshare’ interests in properties in Spain. The tribunal held that the company was making standard-rated supplies of services and that the place of supply was in the UK. The company appealed to the CS which referred the case to the ECJ for rulings on the interpretation of the EC Sixth Directive. The ECJ held that the supplies at issue ‘must be classified at the time when the customer participating in such a scheme converts the rights he initially acquired into a service offered by that operator. Where those rights are converted into hotel accommodation or into a right to temporarily use a property those supplies are supplies of services connected with immovable property’. The place of supply was ‘the place where the hotel or that property is situated’. The ECJ also held that ...