Sims v Revenue & Customs [2010] UKFTT 73 (TC) (16 February 2010)

Sims v Revenue & Customs [2010] UKFTT 73 (TC) (16 February 2010)

The tribunal held that the three-year capping limitation in section 80 VATA 1994 applies to the appellant's claim for overpaid VAT, as his circumstances fall within section 80(1) VATA 1994. The claim must be made within three years of the end of the accounting period in which the overpayment occurred. The tribunal found no breach of the principle of effectiveness, as the limitation period itself does not render the exercise of Community law rights impossible or excessively difficult. The appellant was not prevented by a 'secret' or 'unknowable' policy from exercising his rights, and the responsibility to determine eligibility for the Flat Rate Scheme rests with the taxpayer. The appeal...

Citation
[2010] UKFTT 73
Parties
Appellant: Christopher John Sims; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
16 February 2010
Procedural Posture
VAT Appeal / First Tier Tribunal (tax) Final Decision
Outcome
Appeal dismissed
Legal Topics
VAT Flat Rate Scheme, Three Year Capping Limitation, Community Law Rights, Principle of Effectiveness, Retrospective Application of VAT Schemes
Tax Law European Union Law VAT Flat Rate Scheme Three Year Capping Limitation Community Law Rights Principle of Effectiveness Retrospective Application of VAT Schemes

Case Brief

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Parties

Christopher John Sims

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether the three-year capping limitation under section 80 VATA 1994 applies to the appellant's claim for overpaid VAT when retrospectively joining the Flat Rate Scheme
  2. 2 Whether the appellant was prevented from exercising Community law rights due to lack of knowledge about the correct business category for the Flat Rate Scheme
  3. 3 Whether the capping provisions breach the Community law principle of effectiveness

Ratio Decidendi

The tribunal held that the three-year capping limitation in section 80 VATA 1994 applies to the appellant's claim for overpaid VAT, as his circumstances fall within section 80(1) VATA 1994. The claim must be made within three years of the end of the accounting period in which the overpayment occurred. The tribunal found no breach of the principle of effectiveness, as the limitation period itself does not render the exercise of Community law rights impossible or excessively difficult. The appellant was not prevented by a 'secret' or 'unknowable' policy from exercising his rights, and the responsibility to determine eligibility for the Flat Rate Scheme rests with the taxpayer. The appeal...

Court Disposition

Appeal dismissed