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Input tax - late recovery |
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The three-year capping legislation introduced in 1997 prevents the recovery
of VAT more than three years after the VAT return was due. That legislation
was much criticised because there was no transitional period to cover claims
prior to its introduction.
Indeed, the CA has now followed the ECJ’s lead, and
held that the failure to have a transitional regime meant that the three-year
cap was defective. The end result is that businesses with possible input tax
recovery claims before May 1997 can now go ahead with such claims (even
if they have not previously made a claim for recovery). Condé Nast v Revenue
& Customs [2006] EWCA Civ 976.
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October 2006 |
