Market leading insight for tax experts
View online issue

Impact Contracting Solutions Limited v HMRC

Can HMRC rely on a principle of EU law to cancel a VAT registration? 

In Impact Contracting Solutions Limited v HMRC [2023] UKUT 215 (TCC) (1 September 2023) the Upper Tribunal (UT) held that HMRC was entitled to cancel the VAT registration of the appellant regardless of the level of its taxable turnover. The UT decided that the principle of EU law preventing the abuse of the VAT system meant that HMRC could cancel the VAT registration.

The HMRC decision to cancel the VAT registration was made before 1 January 2021 and relied on the principle in the CJEU judgment in Valsts ienemumu dienests v Ablessio SIA (Case C-527/11) (Ablessio). HMRC’s concern appears to have been that the VAT registration number prior to it being cancelled may have been used to facilitate VAT fraud carried out by other persons. It was not in dispute that the appellant had...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top