The court was asked as to the limits on the ability of a trader to claim repayment of or credit for VAT paid by him on purchasing goods. The usual position is that, where a trader has received VAT on sales made by him, he has the right to credit for input tax which he has paid on his purchases. If the input tax exceeds the output tax for which he must account to the respondent (‘HMRC’) at the end of the relevant period, he is entitled to repayment of the difference. Those rights are fundamental to the way VAT operates.
Arden, McFarlane, Burnett LJJ
[2015] EWCA Civ 39
Bailii
England and Wales
VAT
Updated: 27 December 2021; Ref: scu.542211