allpay VAT update – legal advice

Following our previous updates regarding contracts under our Electronic Payments Services framework, our legal advisors have reviewed the member supply agreement in detail and advised that the key clause to review is 8.1. This states that unless otherwise agreed in writing, the prices quoted are “exclusive of value added tax (if any)” therefore, having also reviewed current case law, their advice is that the buyer (member) is obliged to pay in addition to the price any VAT that may be chargeable on the supplies. We will continue to provide updates to members on this issue and are working closely with allpay to ensure we are informed of progress on their legal proceedings against HMRC.