MacDonald Resorts Ltd v HMRC

ECJ Case C-270/09

This case concerns the place supply of a timeshare operated by Macdonald Resorts in Spain. HM Revenue & Customs won at Tribunal contesting that the place of supply was the UK and therefore at the standard rate of VAT.

The case was referred to the European Court of Justice (ECJ). The supply was decided to be:

…classified at the time when the customer participating in such a scheme converts the rights he initially acquired into a service offered by that operator. Where those rights are converted into hotel accommodation or into a right to temporarily use a property, those supplies are supplies of services connected with immovable property.

In summary the place of supply followed the underlying supply, which was a supply of hotel accommodation. The place of supply of hotel accommodation is where the hotel is situated.