In Iveco v HMRC [2017] EWCA Civ 1982 (1 December 2017) the Court of Appeal found that a supplier that had not claimed a reduction in the taxable amount in its return could not do so later on when the relevant EU provisions were implemented in UK legislation.
Iveco was the representative member of a VAT group selling commercial vehicles. Members of the group had made promotional payments (or rebates) between the beginning of 1978 and the end of 1989. Under the Sixth VAT Directive Art 11C(1) when the price of a supply is reduced the taxable amount is reduced accordingly. However UK legislation implementing the directive only took effect on 1 January 1990. Iveco therefore sought a repayment of £73 361 865 and the issue was whether Iveco's claim was time-barred.
It was accepted that Art 11C(1) had direct effect (Lombard Ignatlan Lízing (Case...
