IDT Card Services Ireland Ltd, R (on the application of) v HM Customs & Excise [2004] EWHC 3188 (Admin) (21 December 2004)

IDT Card Services Ireland Ltd, R (on the application of) v HM Customs & Excise [2004] EWHC 3188 (Admin) (21 December 2004)

The UK is not entitled to charge VAT on the supply of telecommunications services by Interdirect (Ireland) to UK end-users via multifunctional cards, as the place of supply under Article 9(1) of the Sixth Directive is Ireland. There is no principle in the Directive or UK law permitting the UK to impose VAT in these circumstances, and the structures adopted do not amount to abuse or unlawful tax avoidance.

Citation
[2004] EWHC 3188 (Admin)
Parties
Claimant: IDT Card Services Ireland Limited; Defendant: HM Customs and Excise
Jurisdiction
England and Wales
Judgment Date
21 December 2004
Procedural Posture
Judicial Review / High Court Judgment
Outcome
Claim allowed
Legal Topics
Value Added Tax (vat), Interpretation of EU Directives, Cross Border Supply of Services, Tax Avoidance, Face Value Vouchers
Tax Law European Union Law Value Added Tax (vat) Interpretation of EU Directives Cross Border Supply of Services Tax Avoidance Face Value Vouchers

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 19 Party arguments 2
Sign in to unlock

Parties

IDT Card Services Ireland Limited

Claimant

HM Customs and Excise

Defendant

Procedural Posture

Judicial Review / High Court Judgment

Legal Issues

  1. 1 Whether UK VAT is chargeable on the supply of telecommunications services by an Irish company to UK end-users via multifunctional phonecards
  2. 2 Whether the UK can interpret domestic VAT legislation to impose VAT in circumstances where the Sixth Directive allocates the place of supply to another Member State
  3. 3 Whether the structures adopted by the claimant amount to tax avoidance or abuse under EU law

Ratio Decidendi

The UK is not entitled to charge VAT on the supply of telecommunications services by Interdirect (Ireland) to UK end-users via multifunctional cards, as the place of supply under Article 9(1) of the Sixth Directive is Ireland. There is no principle in the Directive or UK law permitting the UK to impose VAT in these circumstances, and the structures adopted do not amount to abuse or unlawful tax avoidance.

Court Disposition

Claim allowed

Orders

  • Costs awarded to claimant, to be assessed if not agreed
  • Permission to appeal granted, with time for serving Notice of Appeal extended to 31 January