VAT briefing for June 2015

The Court of Appeal has given judgment in Littlewoods Retail v HMRC [2015] EWCA Civ 515 (reported in Tax Journal 29 May 2015) upholding the judgment of the High Court last year that Littlewoods was entitled to compound interest on its overpayments of VAT between 1973 and 2004.

 

The key issue was how to interpret guidance issued by the CJEU in Littlewoods (C-591/10) following an earlier reference from the High Court that the EU law principle of effectiveness requires an ‘adequate indemnity for the loss occasioned through the undue payment of VAT’...