Updated HMRC guidance on the cost-sharing exemption

*Update*: HMRC has since published Revenue and Customs Brief 10 (2018) which explains changes to HMRC’s policy following legal judgments and the impact on the test for directly necessary services, which enables cost sharing groups to ignore certain non-qualifying supplies for the CSE.

Revenue and Customs Brief 3 (2018): changes to the VAT exemption for cost sharing groups and the related VAT Information Sheet 02/18 explain the immediate changes that are taking place in HMRC’s policy following recent judgments in the 4 cases: