04 December 2019 
Andrea Marshall, Tax Specialist
Nothing to do with HE really, though perhaps a reminder to bear in mind how services are described and categorised, and some interesting discussion of what ‘consultancy’ comprises. But really it’s just fun to learn that in the Gray & Farrar International LLP case about an international matchmaking service HMRC argued that the process of matchmaking was a kind of ‘inexplicable magic’ using ‘intuition and the reading of emotions’ whereas a consultant ‘provides advice on a reasoned, evidence based, intellectual basis’. The difference would affect whether or not the appellant should have charged VAT to individuals outside of the EU.
However, the First-tier Tribunal felt that when the matchmaking firm made a compatibility recommendation it was advice given by an expert (the MD) within her particular field of expertise, and should be treated as consultancy. Nevertheless, there were other services involved, and ultimately the tribunal held that VAT should have been charged.
