Marks and Spencer Plc v Customs and Excise: HL 4 Feb 2009

The taxpayer requested refund of VAT overpaid on chocolate covered cakes. The CandE resisted saying that the money had been substantially already paid by its customers. The case had been referred twice to the ECJ, who answered that the maintenance of exemptions or of reduced rates of VAT lower than the minimum rate laid down by the Sixth Directive is permissible only in so far as it complies with, inter alia, the principle of fiscal neutrality inherent in that system, and that fiscal neutrality is a fundamental principle of VAT.
Held: Though the ECJ answer might allow further litigation, the House allowed the taxpayer’s appeal on the basis that ‘the Commissioners have, after thirteen years of litigation, decided that they do not wish to pursue these matters.’

Lord Hoffmann, Lord Scott of Foscote, Lord Walker of Gestingthorpe
[2009] UKHL 8, [2009] STC 452, [2009] STI 474, [2009] BTC 5106, [2009] BVC 106, [2009] 1 All ER 939
Bailii, HL
England and Wales
Citing:
Appeal fromMarks and Spencer Plc v Commissioners of Customs and Excise (No 5); Commissioners of Customs and Excise v University of Sussex CA 21-Oct-2003
The company sought to reclaim overpaid VAT.
Held: If the UK government had failed properly to implement the directive, then a person affected had the right to claim the benefit of direct enforceability. However, the directive itself was . .
Reference to ECJMarks and Spencer Plc v Customs and Excise HL 12-Jul-2006
Question referred to ECJ. Five questions were referred. . .
Decision to refer to ECJMarks and Spencer Plc v Customs and Excise HL 28-Jul-2005
The claimant had sought repayment of overpaid VAT, and the respondent resisted arguing that this would be an unjust enrichment. A reference to the European Court was sought.
Held: It was not possible to say that the House’s opinion was acte . .
Advocate General’s opinionMarks and Spencer v Her Majesty’s Commissioners of Customs and Excise ECJ 13-Dec-2007
ECJ Value added tax – Derogation under Article 28 of Directive 77/388 – Principle of neutrality Principle of equal treatment Right to obtain a refund of the tax in the event of incorrect interpretation of . .
ECJ DecisionMarks and Spencer v Her Majesty’s Commissioners of Customs and Excise ECJ 10-Apr-2008
(Third Chamber of the Court of Justice) Taxation Sixth VAT Directive Exemption with refund of tax paid at the preceding stage Erroneous taxation at the standard rate Right to zero rate Entitlement to refund Direct effect General principles of . .
Opinion on first referenceMarks and Spencer v Commissioners of Customs and Excise ECJ 11-Jul-2002
ECJ Sixth VAT directive – National legislation retroactively curtailing a limitation period for repayment of sums unduly paid – Compatibility with the principles of effectiveness and of the protection of . .
Judgment on first referenceMarks and Spencer plc v Commissioners of Customs and Excise ECJ 11-Jul-2002
The claimant challenged the reduction of the limitation period from six years to three for the reclaiming of overpaid VAT with immediate effect, depriving it of the opportunity to recover sums paid in excess. The company sold vouchers. It paid VAT . .
CitedArgos Distributors v Commissioners of Customs and Excise ECJ 24-Oct-1996
VAT was payable on the value of a discount voucher only, and not on the full price of the goods. ‘According to the court’s settled case law, the taxable amount for the supply of goods or services is represented by the consideration actually received . .
First instanceMarks and Spencer Plc v Commissioners of Customs and Excise Admn 21-Dec-1998
The limitation period for the recovery of overpaid VAT was alleged to offend the principle of equivalence.
Held: Moses J said: ‘In my judgment no comparison can be made with other types of tax such as income tax payable in respect of an . .
At CAMarks and Spencer Plc v Customs and Excise CA 14-Dec-1999
The taxpayer discovered that it had over several years made overpayments of VAT on chocolate covered biscuits because of a mistake as to the tax mutual with the defendants.
Held: MandS’s challenge to section 80(4) (as infringing EU law) . .

Lists of cited by and citing cases may be incomplete.

VAT, European

Updated: 27 December 2021; Ref: scu.280437