SilverDoor Limited v The Commissioners for HMRC
Decision date: 28 July 2022
Neutral citation: [2022] UKFTT 233 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
SilverDoor appealed VAT assessments charging VAT on a 2.95% corporate-card fee it charged Clients when booking short-term lettings. The Tribunal found the fee was consideration for SilverDoor's standard-rated reservation services (it acted as disclosed agent for Property Partners) and not an exempt financial service. Alternatively, the Tribunal held SilverDoor did not execute transfers of money nor act as an intermediary bringing parties together for an exempt financial transaction. The appeal was dismissed and the VAT assessments upheld.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal’s ratio is that a charge to recover card-acquirer costs does not convert a supplier’s reservation services into an exempt financial service where the supplier provides the reservation services for consideration, and that a supplier does not effect an exempt “transfer of funds” (or qualify as an intermediary under the exemption) where its acts are merely preparatory or remote to the execution of the payment and it does not execute the transfer or assume responsibility for its execution.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed (obiter) that issuing a payment request or directing a payer to a merchant acquirer, and internal accounting entries recording a payment flow, do not by themselves constitute execution of a transfer of money or negotiation/bringing together sufficient to attract the financial services exemption.