VAT Alert: On 26 May 2016, the Court of Justice of the European Union (CJEU) released its judgments in two cases: National Exhibition Centre Limited (NEC) (C-130/15) and Bookit Limited (C-607/14), referred by the UK Upper Tribunal and First-tier Tribunal respectively.
The CJEU has held in both cases that booking fees charged to customers making advance bookings for concert and cinema tickets on debit and credit cards are taxable and do not qualify for exemption under Article 135(1)(d) of the Principal VAT Directive.
The CJEU’s conclusions are widely drawn and could impact businesses operating across a range of industries and sectors. Affected businesses may wish to consider the implications of the judgment, analysing their role in each payment and supply chain.
Find more information on this alert in the below attachment.