Upper Tribunal sets out the key principles in important case on VAT grouping

Hui Ling McCarthy

The Upper Tribunal has determined four central issues in the case of HSBC Electronic Data Processing (Guandong) and others v HMRC. In particular, the UT held that the concept of “establishment” in the context of VAT grouping is informed by the same concept in the context of place of supply rules, and that the UK is entitled to implement anti-avoidance rules which extend beyond cases where there has been an abuse of rights.


Hui Ling McCarthy QC and Michael Ripley acted for HMRC, together with Katherine Apps and Edward Waldegrave.


The decision can be found here.