UK Charity Liable For $18M VAT On Services, EU Court Rules

Law360 (March 19, 2021, 6:19 PM EDT) -- A U.K. charity that funds medical research can't recover £13 million ($18 million) in domestic value-added tax it claimed to have overpaid on fees to investment managers outside the European Union, the bloc's highest court ruled.

The European Court of Justice, in a decision Wednesday, found that Wellcome Trust Ltd. is subject to VAT because a charitable trust's purchase of certain non-EU-based services is subject to a "place of supply" rule.

Wellcome Trust had conceded it was a "taxable person" but wasn't acting in that capacity when it bought the investment services from non-U.K. suppliers while Britain was still an EU...

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