From 2017, Sonder Europe Limited provided accommodation in the UK to corporate and leisure travellers. The accommodation was in the form of self-contained apartments which Sonder had leased from third party landlords.

The company sublet the apartments to travellers for different periods from a single night to a month or more. During the relevant period, the average stay at a Sonder apartment in the UK was five nights.

This appeal concerned the Tour Operators Margin Scheme (TOMS), a special VAT scheme which applies to certain supplies made by travel agents and tour operators for the benefit of travellers. It was created by the Value Added Tax (Tour Operators) Order 1987 (TOMS Order).