Importance of review

Statutory review of VAT assessment offered by HMRC

The substantive appeal concerned a dispute as to whether a Jersey incorporated company NT ADA was within the scope of UK VAT for supplies made to UK-based customers. HMRC ruled the company should be VAT-registered issued a certificate of registration effective from 1 May 2008 and imposed a penalty under VATA 1994 s 67 for failure to register.

The company appealed on a protective basis but said the First-tier Tribunal had no jurisdiction to hear the appeal. The tribunal decided it did have jurisdiction on the first two matters but struck out the penalty appeal. This was on the ground that HMRC had failed to comply with the requirements of VATA 1994 s 83A by failing to offer a review which invalidated the penalty. In correspondence with the taxpayer it had said: ‘If you disagree with...