Prior payment of the tax is required for VAT appeals (barring hardship). Etienne Wong (Old Square Tax Chambers) examines Totel, the case on whether this is lawful.
A trader is assessed to VAT. It disagrees with the assessment. Discussions with HMRC break down. The trader wants to appeal the assessment to the tribunal. However as we all know it would only be able to do so if it were first to pay the tax to HMRC – under the so-called ‘pay first’ requirement – or alternatively to demonstrate successfully that to do so would cause it hardship.
Most traders do one or the other. Hardly any would even think to suggest that the ‘pay first’ requirement is unlawful (and should therefore be struck down). One trader did – Totel – and this is its story.
The story so far
Totel sells mobile phones. In...
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Prior payment of the tax is required for VAT appeals (barring hardship). Etienne Wong (Old Square Tax Chambers) examines Totel, the case on whether this is lawful.
A trader is assessed to VAT. It disagrees with the assessment. Discussions with HMRC break down. The trader wants to appeal the assessment to the tribunal. However as we all know it would only be able to do so if it were first to pay the tax to HMRC – under the so-called ‘pay first’ requirement – or alternatively to demonstrate successfully that to do so would cause it hardship.
Most traders do one or the other. Hardly any would even think to suggest that the ‘pay first’ requirement is unlawful (and should therefore be struck down). One trader did – Totel – and this is its story.
The story so far
Totel sells mobile phones. In...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
