HMRC’s position according to their policy paper Interpretation of VAT and excise law from 1 January 2024 dated 15 April 2024 is that direct effect is no longer available in VAT for anything which occurred after 1 January 2024. This view has been echoed in other publications as well. The purpose of this article is to defend the opposite opinion: direct effect is alive and well even for transactions which occurred this year.
The issue is not just academic: as the recent First-tier Tribunal decision CCLA v HMRC [2024] UKFTT 636 (TC) demonstrates there continue to be scenarios where taxpayers need to rely on direct effect to bring their case home.
Legal background
When the UK was still an EU Member State the VAT Directive (2006/112/EC) influenced the domestic legal position in two ways. Firstly anything in domestic law such as...
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HMRC’s position according to their policy paper Interpretation of VAT and excise law from 1 January 2024 dated 15 April 2024 is that direct effect is no longer available in VAT for anything which occurred after 1 January 2024. This view has been echoed in other publications as well. The purpose of this article is to defend the opposite opinion: direct effect is alive and well even for transactions which occurred this year.
The issue is not just academic: as the recent First-tier Tribunal decision CCLA v HMRC [2024] UKFTT 636 (TC) demonstrates there continue to be scenarios where taxpayers need to rely on direct effect to bring their case home.
Legal background
When the UK was still an EU Member State the VAT Directive (2006/112/EC) influenced the domestic legal position in two ways. Firstly anything in domestic law such as...
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:
