Court of Justice 7 September 2010, C-270/09 (Macdonald Resorts Ltd v The Commissioners for Her Majesty’s Revenue & Customs.)

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This Advocate General's Opinion addresses a preliminary reference from the Scottish Court of Session concerning the VAT treatment, under Articles 9(2)(a) and 13B(b) of the Sixth Directive (77/388/EEC), of services supplied by Macdonald Resorts Limited (MRL) in connection with a points-based timeshare scheme ('Options Scheme'), whereby customers acquire contractual rights ('Points Rights') redeemable annually for occupation of holiday accommodation. The Advocate General opines that such supplies constitute 'services connected with immovable property' within the meaning of Article 9(2)(a), with the place of supply for enhancement fees being the location of the property in which the depositing member holds timeshare rights, and for purchase fees being determined by apportionment across the Member States in which MRL holds properties at the time of acquisition. The Advocate General further opines that the service may be characterised as a 'letting of immovable property' under Article 13B(b), but that this provision does not preclude Member States from excluding short-term holiday accommodation from the VAT exemption, whether under Article 13B(b)(1) or the enabling power in the second subparagraph of that provision.AI