Taygroup Ltd v Revenue & Customs [2013] UKFTT 336 (TC) (06 June 2013)

Taygroup Ltd v Revenue & Customs [2013] UKFTT 336 (TC) (06 June 2013)

Taygroup's self-billing agreements did not comply with Regulation 13(3B) as they did not specify a period ending with the underlying supply contract, and suppliers were not VAT registered at the material times. Therefore, self-billing invoices were invalid and input tax deduction was not allowed. HMRC's refusal to accept alternative evidence was reasonable and proportionate. European law does not override the requirement for compliance with domestic formalities in these circumstances.

Citation
[2013] UKFTT 336
Parties
Appellant: Taygroup Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
06 June 2013
Procedural Posture
VAT Input Tax Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Input Tax Deduction, Self Billing Arrangements, VAT Invoice Compliance, HMRC Discretion, European Law on VAT
Tax Law VAT Input Tax Deduction Self Billing Arrangements VAT Invoice Compliance HMRC Discretion European Law on VAT

Case Brief

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Parties

Taygroup Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / First Tier Tribunal (tax) Final Judgment

Legal Issues

  1. 1 Whether Taygroup's self-billing agreements complied with Regulation 13 VAT Regulations 1995
  2. 2 Whether Taygroup had a right to deduct input tax in absence of compliant self-billing agreements
  3. 3 Whether HMRC exercised its discretion under Regulation 29 unreasonably

Ratio Decidendi

Taygroup's self-billing agreements did not comply with Regulation 13(3B) as they did not specify a period ending with the underlying supply contract, and suppliers were not VAT registered at the material times. Therefore, self-billing invoices were invalid and input tax deduction was not allowed. HMRC's refusal to accept alternative evidence was reasonable and proportionate. European law does not override the requirement for compliance with domestic formalities in these circumstances.

Court Disposition

Appeal dismissed

Orders

  • No right to deduct input tax on invalid self-billing invoices
  • Assessments by HMRC upheld