The 16 September 2026 edition of KPMG’s Indirect Tax Weekly Talking Points covers the latest HMRC VAT Briefs, updated guidance on fund management services, and significant European Court of Justice (ECJ) and First-tier Tribunal (FTT) decisions. Key cases address input tax recovery on mixed-use costs, the Tour Operators Margin Scheme (TOMS) application to hybrid travel packages, Transfer of Going Concern (TOGC) treatment for partial business transfers, and VAT liability in chain transactions involving multiple intermediaries. The edition also summarizes HMRC’s updated guidance on the VAT treatment of investment management fees following recent judicial reviews.
Key Takeaways
- Input Tax Apportionment Clarified: Recent rulings refine the ‘direct and immediate link’ test for input tax recovery, requiring businesses to revisit partial exemption methodologies.
- TOMS Scope Expanded: The FTT confirmed that TOMS applies where a travel organizer purchases and resells travel services as a principal, even if some elements are sourced from related parties.
- Chain Transaction Certainty: New guidance on identifying the ‘principal’ supply in multi-party cross-border chains reduces double taxation risks for logistics and e-commerce operators.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement