VAT briefing for February 2012

Key recent VAT developments include the following: in ADV Allround, the CJEU has clarified the meaning of a ‘supply of staff’. In Royal Bank of Scotland, the High Court considered the effect of a novation on TOGC treatment, and the exemption for insurance intermediary services. The European Commission has considered that Luxembourg’s cost sharing group rules infringe the VAT Directive, with consequences for similar proposed UK rules. HMRC has provided helpful draft guidance for retail investment advisors following the FSA’s Retail Distribution Review.