Gabbitas Educational Consultants Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 27 November 2009
Neutral citation: [2009] UKFTT 325 (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
Gabbitas provided guardianship packages to non-EC parents of pupils at UK schools. The tribunal had to decide whether those packages were "services of consultants or similar services" under article 56(1)(c) (which would make the place of supply the customer's residence abroad) or were predominantly organisational/administrative services (place of supply in the UK). The tribunal found most elements were administrative/organisational rather than specialist consultancy, held the place of supply was the UK, and dismissed the appeal.
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 treated the character of the service supplied, not merely the supplier's professional status, as decisive for article 56(1)(c). Services described as specialist/expert advisory services by someone with relevant experience or qualifications fall within "consultants or similar services," but a package that is predominantly organisational, administrative or practical support does not, even if it contains limited advisory elements.
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 indicated (obiter) that article 56(1)(c) should not be confined to traditionally recognised liberal professions but still requires advisory services of specialist/expert quality; and that marketing material may be admissible to describe the service actually supplied where it accurately reflects operational practice.