Following the judgment of the Court of Justice of the European Union (CJEU) in the “off-shoring” case of Paul Newey T/A Ocean Finance 1, HMRC have now issued Revenue & Customs Brief 18/13 by way of an update on the case for taxpayers and their advisers.

According to the HMRC Brief, the guidance from the CJEU confirms HMRC’s view that economic reality must be considered and that contractual relationships do not necessarily determine VAT issues. However, the Brief accepts that it is now for the Upper Tribunal (which referred the questions about the EU law position to the CJEU) to decide the case in the light of the CJEU’s replies.

Click here for more information.