VAT – Agricultural Flat Rate Scheme – Article 296(2) of the Principal VAT Directive – each Member State may exclude from the flat-rate scheme farmers for whom application of the normal VAT arrangements is not likely to give rise to administrative difficulties – interpretation by the CJEU in Shields and Sons v HMRC – Regulation 204(d) of the VAT Regulations 1995 – requires that in order to be certified to join the scheme, a business’s total Flat Rate Addition of 4% of its anticipated total supplies to be made in the year following the date of certification cannot exceed by pounds 3,000 or more the amount of input tax to which the business would otherwise be entitled to deduct under normal VAT arrangements – the Regulation is not ultra vires as regards the Directive but lawfully implements its aim of administrative simplification for small farming businesses – the Regulation and its application to the appellant do not offend principles of equality of treatment nor fiscal neutrality – appeal dismissed
Citations:
[2020] UKFTT 518 (TC)
Links:
Jurisdiction:
England and Wales
VAT
Updated: 25 November 2022; Ref: scu.661810
