Key Facts
- •Dollar Financial UK Ltd (DFUK) appealed a First-tier Tribunal (FtT) decision striking out its appeal against HMRC's refusal to retrospectively amend the date its US parent company (DFGI) joined the DFUK VAT group.
- •DFUK requested the amendment in September 2016, seeking to backdate DFGI's inclusion from June 2013 to July 2012, based on a claim that DFGI had a UK fixed establishment from July 2012.
- •HMRC refused the request on two grounds: DFGI lacked a fixed establishment in the UK and backdating beyond 30 days required exceptional circumstances.
- •The FtT struck out the appeal, finding no valid application under s 43B(2) VATA 1994 and thus no appealable decision under s 83 VATA 1994.
Legal Principles
Member States can treat financially, economically, and organisationally linked entities as a single taxable person.
Article 11, Principal VAT Directive (2006/112/EC)
VATA 1994 sets out a specific procedure for applications concerning VAT groups (s 43A, s 43B).
VATA 1994
An appeal lies to the Tribunal for matters including the refusal of an application under s 43B(1) or (2) (s 83(1)(k)).
VATA 1994, s 83(1)(k)
Applications under s 43B must be for one of the four purposes specified in s 43B(2)(a)-(d).
VATA 1994, s 43B(2)
HMRC's discretion to refuse applications is limited to eligibility, revenue protection (s 43B(5)), and exceptional circumstances for backdating (s 43B(4)(b)).
VATA 1994, s 43B(4)(b), s 43B(5)
A right of appeal exists under section 83(1)(a) for decisions concerning VAT registration or cancellation.
VATA 1994, s 83(1)(a)
Outcomes
Appeal dismissed.
The FtT correctly found no valid application under s 43B(2) VATA 1994 because DFUK sought to retrospectively amend the date of DFGI's existing group membership, not add a new member. The application was not for one of the four purposes permitted under s 43B(2)(a)-(d). There was also no appealable decision concerning VAT registration of DFGI.