Global IDT Chronicles: VAT Treatment of Employee Recoveries : An Insight into Global Scenario - Part II

In Part-I of the article, Sindhu Mangat (Advocate, Swamy Associates) discussed the significance of European Court of Justice (ECJ) judgment in AstraZeneca UK Ltd v. HMRC and the guidelines issued by HMRC after the ECJ Ruling. As per the existing guidelines in the UK, all kinds of salary deductions/ salary sacrifices are liable for GST and the portion of salary that the employee forgoes is treated as ‘consideration’. If there are supplies...