Barclays Service Corporation & Anor v The Commissioners for HMRC
[2024] UKFTT 785 (TC)
Dollar Financial UK Ltd v The Commissioners for HMRC
23 October 2023
[2023] UKUT 256 (TCC)
Upper Tribunal
A company tried to change the past date its parent company joined its tax group. The tax rules don't let you do that, so the court said no. There was no separate issue about whether the parent company needed to register for tax.
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.
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