Edd Thompson (Forvis Mazars) explores the Upper Tribunal’s approach to the principle of ‘consistent interpretation’ on the VAT charitable fundraising exemption and considers its potential relevance in the post-Brexit era.
Five years on from Brexit and the dust is still far from settled on how far EU law remains relevant to VAT.
Since 1 January 2024 it has been HMRC’s policy that businesses cannot rely on the principle of ‘direct effect’ of EU law in VAT. By contrast the principle of consistent interpretation – also known as the Marleasing principle (derived from Marleasing SA v La Comercial Internacional de Alimentación SA (Case C-106/89)) – continues to apply. The legislative authority behind this policy is apparently to be found in the Retained EU Law Revocation and Reform Act 2023 (REULA) and FA 2024 s 28. Whether HMRC are correct about direct effect and VAT is not a given....
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Edd Thompson (Forvis Mazars) explores the Upper Tribunal’s approach to the principle of ‘consistent interpretation’ on the VAT charitable fundraising exemption and considers its potential relevance in the post-Brexit era.
Five years on from Brexit and the dust is still far from settled on how far EU law remains relevant to VAT.
Since 1 January 2024 it has been HMRC’s policy that businesses cannot rely on the principle of ‘direct effect’ of EU law in VAT. By contrast the principle of consistent interpretation – also known as the Marleasing principle (derived from Marleasing SA v La Comercial Internacional de Alimentación SA (Case C-106/89)) – continues to apply. The legislative authority behind this policy is apparently to be found in the Retained EU Law Revocation and Reform Act 2023 (REULA) and FA 2024 s 28. Whether HMRC are correct about direct effect and VAT is not a given....
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