R T Rate Ltd v Revenue & Customs (VALUE ADDED TAX - motors traders) [2020] UKFTT 392 (TC) (07 October 2020)

R T Rate Ltd v Revenue & Customs (VALUE ADDED TAX - motors traders) [2020] UKFTT 392 (TC) (07 October 2020)

The First-tier Tribunal does not have jurisdiction to grant a remedy for breach of the EU law principle of legitimate expectation in the context of VAT repayment claims under section 80 VATA 1994. The claims are out of time under section 121 Finance Act 2008, and the Tribunal cannot disapply the statutory time limit on the basis of legitimate expectation. The principle of equal treatment does not entitle the appellants to the same outcome as Kent Auto Panels Limited, as that settlement was a matter of agreement and not a binding precedent or evidence of inconsistent treatment requiring a remedy.

Citation
[2020] UKFTT 392
Parties
Appellants: R T Rate Limited & Others; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 October 2020
Procedural Posture
VAT Repayment Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeals dismissed
Legal Topics
Value Added Tax (vat), Legitimate Expectation (eu Law), Equal Treatment (eu Law), Time Limits for Tax Claims, Jurisdiction of Tax Tribunal
Tax Law European Union Law Administrative Law Value Added Tax (vat) Legitimate Expectation (eu Law) Equal Treatment (eu Law) Time Limits for Tax Claims Jurisdiction of Tax Tribunal

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Parties

R T Rate Limited & Others

Appellants

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Repayment Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Does the First-tier Tribunal have jurisdiction to consider and give effect to the EU law principle of legitimate expectation?
  2. 2 Were the Italian Tables materially inaccurate, giving rise to a legitimate expectation?
  3. 3 Are the appellants’ claims out of time under section 121 Finance Act 2008?

Ratio Decidendi

The First-tier Tribunal does not have jurisdiction to grant a remedy for breach of the EU law principle of legitimate expectation in the context of VAT repayment claims under section 80 VATA 1994. The claims are out of time under section 121 Finance Act 2008, and the Tribunal cannot disapply the statutory time limit on the basis of legitimate expectation. The principle of equal treatment does not entitle the appellants to the same outcome as Kent Auto Panels Limited, as that settlement was a matter of agreement and not a binding precedent or evidence of inconsistent treatment requiring a remedy.

Court Disposition

Appeals dismissed

Orders

  • No repayment of VAT to the appellants
  • Claims are out of time and cannot be reopened by the Tribunal