Are you Entitled to Reclaim Overpaid VAT?
On 23 January 2008 the UK House of Lords found in favour of the taxpayer in the case of Conde Nast v HMRC. The UK had introduced a shorter time frame for claiming overpaid VAT in 1996 retrospectively, with no transitional period. It was held that it was against EU law to introduce new time limits without adequate transitional arrangements.
On the basis of this ruling, taxpayers may be able to claim overpaid VAT in the period from the introduction of VAT up to the introduction of the new rule in 1996.
However, as it is very likely that the UK government will introduce transitional period arrangements, the timeframe for claiming the overpaid VAT may not be long.
The House of Lords decision is available at http://www.bailii.org/uk/cases/UKHL/2008/2.html.