On 12th April Eversheds Sutherland published an article discussing the Court of Justice of the EU’s decision in A Oy on contracts that contain an element of barter.  The case concerned the interpretation of the common European VAT system in respect of supplies of services in exchange for reciprocal supplies of goods.  The article warns that the decision in could produce a “hidden” VAT charge.  It concludes that this decision highlights a little-known issue for VAT and is particularly relevant for those operating in the construction, infrastructure and real estate. Contracts old and new should be reviewed to ensure that there are no VAT surprises, if barter could be a factor.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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