VAT Groups & Appealable Matters

One impact of a VAT group registration is that the group is treated as a single taxable person and each company that constitutes the group becomes joint and severally liable for any VAT due. Eco Energy Sales Limited & Others (the Appellants) appealed to the First-Tier Tribunal regarding HMRC’s decision that all members of the VAT group should be held equally liable for outstanding VAT owed by the group representative member, Freedom Renewable Energy Limited, which had entered Administration.


The relevant paperwork necessary to complete a group registration had been completed and submitted to HMRC, who had issued an acknowledgement letter to the Appellant noting that the application had been successful. From the effective date of group registration, a single VAT return was submitted for the entire group in accordance with legislation.


The main consideration within this case was whether the pursuit of the Appellants on a joint and severally liability basis was an appealable matter as defined by legislation and therefore one the First-Tier Tribunal could consider. The group registration had been applied for by the Appellants and since it had become effective, they had undertaken their VAT responsibilities in accordance with this registration.


It was ruled that, as the companies involved had made use of the benefits of group registration, the appeal against being held joint and severally liable for was not a matter that could be considered by the Tribunal as an appealable decision.


To find out if your organisation could benefit from a VAT group, or if a dispute with HMRC is valid for appeal, please contact our free helpline today.

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