Several companies within a group paid VAT. Later the basis of charge to output VAT was revised, and a reclaim became due, but the VAT group had been dissolved. Could the appellant, former lead within the group now make the reclaim.
Held: HMRC’s appeal succeeded. The European legislation allowed but did not oblige countries to introduce Group scheme. The UK scheme allowed the lead to reclaim on behalf of members, rather than creating the group as a quasi person, and that concept was an unnecessary complication. The VAT refund was due to the payer of the VAT, but the company had long since ceased to be a member of the group, and the group payer no longer represented or was agent for the claimant company.
Lord Mance, Lord Reed, Lord Carnwath, Lord Hodge, Lord Briggs
[2018] UKSC 35, 2018 SC (UKSC) 153, [2018] WLR(D) 443, 2018 SLT 1091, [2018] 4 All ER 817, [2018] 1 WLR 3803, 2018 GWD 23-297, [2018] STC 1556, [2018] BVC 34, [2018] STI 1415, UKSC 2016/0204
Bailii, Bailii Summary, WLRD, SC, SC Summary, SC Summary Video, SC 2018 Apr 11 am Video, Bailii 2018 Apr 11 pm Vid
Finance Act 2008 121, Value Added Tax Act 1994 43(1)
Scotland
Citing:
At FTTTx – Taylor Clark Leisure Plc v Revenue and Customs FTTTx 19-Dec-2012
FTTTx VAT – Preliminary Issues; Fleming claims; time bar; group registration; effect of leaving group; effect of disbandment; whether timeous claim by a former member of group entitles the representative member . .
At UTTC – Taylor Clark Leisure Plc v Revenue and Customs UTTC 8-Sep-2014
VAT – Fleming claims – Preliminary Issues – Time-bar: construction of VATA 1994, s. 80 – Entitlement: whether right to repayment assigned; whether right capable of assignation; VATA 1994, s. 43. . .
SCS Leave – Taylor Clark Leisure Plc v HM Revenue and Customs SCS 24-Apr-2015
The applicant seeks leave to appeal against a decision of the Upper Tribunal (Tax and Chancery Chamber). . .
Appeal from refusal of leave – Taylor Clark Leisure Plc and Revenue and Customs Against A Decision of and Refusal of Leave To Appeal By The Upper Tribunal (Tax and Chancery Chamber) SCS 26-May-2015
Extra Division, Inner House Court of Session – appeal from a decision of and refusal of leave to appeal by the Upper Tribunal (Tax and Chancery Chamber) – reclaim of overdeclared VAT outputs . .
Appeal from (SCS) – Taylor Clark Leisure Plc v A Decision of The Upper Tribunal (Tax and Chancery Chamber) SCS 14-Jul-2016
Can the VAT group embodied in the appellant as representative member rely on those claims for repayment of VAT overpaid by the group, when the claims were made timeously but by another member of the VAT group rather than the representative member? . .
Cited – Commissioners of Customs and Excise v Thorn Materials Supply Limited and Thorn Resources Limited HL 18-Jun-1998
When goods were purchased for resale to another company within the same VAT group but the purchasing company left that group before delivery, the entire transaction became a vatable supply. If there is an advance payment of less than the whole . .
Cited – Commissioners for Her Majesty’s Revenue and Customs v Rank Group plc C-259/10 ECJ 10-Nov-2011
ECJ Taxation – Sixth VAT Directive – Exemptions – Article 13B(f) – Betting, lotteries and other forms of gambling – Principle of fiscal neutrality – Mechanised cash bingo – Slot machines – Administrative practice . .
Cited – Fleming (T/A Bodycraft) v Revenue and Customs HL 23-Jan-2008
The transitional rules introducing time limits for failing to deduct VAT inputs made insufficient allowance for the decisions in Marks and Spencer and Grundig.
Held: Lord Hope said: ‘To be compatible with EU law, taxpayers were entitled to be . .
Cited – Linneweber (Taxation) ECJ 17-Feb-2005
Sixth VAT Directive – Exemption for games of chance – Determination of the conditions and limitations to which the exemption is subject – Liability of games organised outside public casinos – Respect for the principle of fiscal neutrality – Article . .
Cited – Ampliscientifica Srl, Amplifin SpA v Ministero dell’Economia e delle Finanze, Agenzia delle Entrate (Taxation) ECJ 22-May-2008
ECJ Sixth VAT directive – Taxable persons Second subparagraph of Article 4(4) Parent companies and subsidiaries – Implementation by the Member State of the single taxable person scheme Conditions Consequences.
Cited – Revenue and Customs v BMW (UK) Holdings Ltd UTTC 19-Oct-2016
UTTC VAT – grouping – claim for overpaid tax where company leaves VAT group – correct entity to make claim – last representative member – first appeal (BMW/MGR) allowed; second and third appeals (Lloyds/Standard . .
Cited – Skandia America Corporation ECJ 17-Sep-2014
Reference for a preliminary ruling – Common system of value added tax – Directive 2006/112/EC – VAT group – Internal invoicing for services supplied by a main company with its seat in a third country to its branch belonging to a VAT group within a . .
Approved – Standard Chartered Plc and Others v Revenue and Customs FTTTx 31-Mar-2014
VAT – claims under s 80 VATA – VAT groups – Art 4(4), Sixth Directive (Art 11, Principal VAT Directive) – s 43 VATA – entitlement to claim – effect of individual taxable member joining a VAT group on VAT overpayments arising prior to that event – . .
Cited – Keighley, Maxsted and Co v Durant HL 20-May-1901
Lord Lindley said: ‘The explanation of the doctrine that an undisclosed principal can sue and be sued on a contract made in the name of another person with his authority is, that the contract is in truth, although not in form, that of the . .
Lists of cited by and citing cases may be incomplete.
Updated: 30 July 2021; Ref: scu.619947
