Grattan PLC v Revenue & Customs [2013] UKFTT 488 (TC) (11 September 2013)

Grattan PLC v Revenue & Customs [2013] UKFTT 488 (TC) (11 September 2013)

Neither Article 8(a) of the Second Directive nor the principle of fiscal neutrality (in any sense) confers a right to treat the basis of assessment of a supply of goods as retrospectively reduced where, after the supply, an agent receives a credit from the supplier. The principle of fiscal neutrality does not have independent effect and cannot override the absence of a specific provision in the Directive. The appeal on the pre-1978 supplies issue is dismissed.

Citation
[2013] UKFTT 488
Parties
Appellant: Grattan PLC; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
11 September 2013
Procedural Posture
VAT Appeal (first Tier Tribunal, Tax Chamber) / Post Preliminary Reference to Cjeu; Final Decision on Pre 1978 Supplies Issue
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat), Fiscal Neutrality, Retrospective Adjustment, Directives Interpretation
Tax Law European Union Law Value Added Tax (vat) Fiscal Neutrality Retrospective Adjustment Directives Interpretation

Case Brief

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Parties

Grattan PLC

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (first Tier Tribunal, Tax Chamber) / Post Preliminary Reference to Cjeu; Final Decision on Pre 1978 Supplies Issue

Legal Issues

  1. 1 Whether commission earned by mail order agents in respect of third party purchases (3PP commission) gives rise to a retrospective reduction in the value of supplies made by mail order companies prior to 1 January 1978 under Article 8(a) of the Second Directive
  2. 2 Whether the principle of fiscal neutrality or equal treatment provides a directly effective right to such a reduction independently of the Directive

Ratio Decidendi

Neither Article 8(a) of the Second Directive nor the principle of fiscal neutrality (in any sense) confers a right to treat the basis of assessment of a supply of goods as retrospectively reduced where, after the supply, an agent receives a credit from the supplier. The principle of fiscal neutrality does not have independent effect and cannot override the absence of a specific provision in the Directive. The appeal on the pre-1978 supplies issue is dismissed.

Court Disposition

Appeal dismissed

Orders

  • Grattan’s appeal on the pre-1978 supplies issue is dismissed.