Value Added Tax Act 1983 (repealed 1.9.1994)

40 Appeals. U.K.

(1) An appeal shall lie to a value added tax tribunal constituted in accordance with Schedule 8 to this Act against the decision of the Commissioners with respect to any of the following matters—

(a) the registration or cancellation of registration of any person under this Act;

(b) the tax chargeable on the supply of any goods or services [F1 on the acquisition of goods from another member State or, subject to subsection (5) below, on the importation of goods from a place outside the member States];

(c) the amount of any input tax which may be credited to a person;

[F2 (d) the proportion of input tax allowable under section 15 above];

[F3 (da) the amount of any refunds under section 20A above;]

(e) the amount of any refunds under section 21 above;

(f) a claim for a refund under section 22 above [F4 or section 11 of the Finance Act 1990];

[F5 (fa) any claim for a refund under any regulations made by virtue of section 8C(5) above;]

(g) a claim by a taxable person under section 26 above;

(h) any refusal of an application under section 29 above;

[F6 (hza) any refusal or cancellation of certification under section 37B above or any refusal to cancel such certification;]

[F7 (ha) any liability of the Commissioners to pay interest under section 38A above or the amount of interest so payable;]

[F8 (hh) any direction or supplementary direction made under paragraph 1A of Schedule 1 to this Act]

(i)

F9 (j) any direction under paragraph 1, F10 . . . or 3 of Schedule 4 to this Act;

[F11 (ja) any direction under paragraph 1 of Schedule 4A to this Act;]

(k) any refusal to permit the value of supplies to be determined by a method described in a notice published under paragraph 2(3) of Schedule 7 to this Act;

(l) any requirements imposed by the Commissioners in a particular case under paragraph 3(2)(b) of Schedule 7 to this Act;

(m) an assessment—

(i) under sub-paragraph (1) or (2) of paragraph 4 of Schedule 7 to this Act in respect of a period for which the appellant has made a return under this Act; or

(ii) under sub-paragraph (6) of that paragraph, [F12 or

(iii) under paragraph 4A of that Schedule,]

or the amount of such an assessment;

(n) the requirement of any security under [F13 section 32A(7) above or] paragraph 5(2) of Schedule 7 to this Act.

[F14 (o) any liability to a penalty or surcharge by virtue of any of sections 13 to [F15 17A] and 19 of the Finance Act 1985;

(p) the amount of any penalty, interest or surcharge specified in an assessment under section 21 of that Act;

(q) the making of an assessment on the basis set out in section 22(4) of that Act.]

[F16 (r) any refusal of authorisation or termination of authorisation in connection with the scheme made under paragraph 2(3A) of Schedule 7 to this Act;]

[F17 (s) a claim for the repayment of an amount under section 24 of the Finance Act 1989 (recovery of overpaid tax).]

[F18 (1A) Without prejudice to [F19 section 15A] of the Finance Act 1985, nothing in subsection (1)(p) above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty, interest or surcharge except in so far as it is necessary to reduce it to the amount which is appropriate under sections 13 to 19 of that Act.]

(2) An appeal under this section shall not be entertained unless the appellant has made all the returns which he was required to make under paragraph 2(1) of Schedule 7 to this Act and [F20 except in the case of an appeal against a decision with respect to the matter mentioned in subsection (1)(n) above, unless he]has paid the amounts shown in those returns as payable by him.

(3) Where the appeal is against a decision with respect to any of the matters mentioned in [F21 any of paragraphs (b), (m), (o) and (p)]of subsection (1) above it shall not be entertained unless—

(a) the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them; or

(b) on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the value added tax tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.

[F22 (3ZA) Where—

(a) there is an appeal against a decision of the Commissioners with respect to, or to so much of any assessment as concerns, the amount of input tax that may be credited to any person or the proportion of input tax allowable under section 15 above,

(b) that appeal relates, in whole or in part, to any determination by the Commissioners—

(i) as to the purposes for which any goods or services were or were to be used by any person, or

(ii) as to whether or to what extent the matters to which any input tax was attributable were or included matters other than the making of supplies within section 15(2) above, and

(c) tax for which, in pursuance of that determination, there is no entitlement to a credit is tax on the supply, acquisition or importation of something in the nature of a luxury, amusement or entertainment,

the tribunal shall not allow the appeal or, as the case may be, so much of it as relates to that determination unless it considers that the determination is one which it was unreasonable to make or which it would have been unreasonable to make if information brought to the attention of the tribunal that could not have been brought to the attention of the Commissioners had been available to be taken into account when the determination was made.]

[F23 (3A) [F24 Where there is an appeal against a decision to make such a direction as is mentioned in subsection (1) (hh) above, the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied as to the matters in paragraph (a) to (d) of sub-paragraph (2) of paragraph 1A of Schedule 1 to this Act or, as the case may be, as to the matters in sub-paragraph (4) of that paragraph.

(3B) Where, on an appeal against a decision with respect to any of the matters mentioned in subsection (1)(m) above];-

(a) it is found that the amount specified in the assessment is less than it ought to have been, and

(b) the tribunal gives a direction specifying the correct amount,

the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.]

(4) Where on an appeal under this section it is found—

(a) that the whole or part of any amount paid or deposited in pursuance of subsection (3) above is not due; or

(b) that the whole or part of any amount due to the appellant under section 14(5) above has not been paid,

so much of that amount as is found not to be due or not to have been paid shall be repaid (or, as the case may be, paid) with interest at such rate as the value added tax tribunal may determine; and where the appeal has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction.

(5) No appeal shall lie under this section with respect to any matter that has been or could have been referred to arbitration under section 127 of the M1 Customs and Excise Management Act 1979 as applied by section 24 above.

(6) Where an appeal under this section is against a decision of the Commissioners which depended upon a prior decision taken by them in relation to the appellant, the fact that the prior decision is not within subsection (1) above shall not prevent the tribunal from allowing the appeal on the ground that it would have allowed an appeal against the prior decision.

Textual Amendments

F1 Words in s. 40(1)(b) substituted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(a); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F2 S. 40(1)(d) substituted by Finance Act 1987 (c. 16, SIF 40:2), s. 19(2), Sch. 2 para. 4

F3 S. 40(1)(da) inserted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(b); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F4 Words inserted by Finance Act 1990 (c. 29, SIF 40:2), s. 11(11)(b)

F5 S. 40(1)(fa) inserted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(c); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F6 S. 40(hza) inserted (1.8.1992) by Finance (No. 2) Act 1992 (c. 48), s. 16(2); S.I. 1992/1867, art. 3, Sch. Pt. I.

F7 S. 40(1)(ha) inserted by Finance Act 1991 (c. 31, SIF 40:2), s. 17(2)

F8 S. 40(1)(hh) inserted by Finance Act 1986 (c. 41, SIF 40:2), s. 10(2)

F9 S. 40(1)(i) repealed by Finance Act 1988 (c. 39, SIF 40:2), s. 148, Sch. 14 Pt. III

F10 Word in s. 40(1)(j) repealed by Finance (No. 2) Act 1992 (c. 48), s. 82, Sch. 18 Pt. V (by the note at the end of Pt. V of Sch. 18 it is provided that the repeals in Pt. V come into force in accordance with s. 14(3) of that 1992 Act); S.I. 1992/1867, art. 3, Sch. Pt. I; S.I. 1992/2979, art. 4, Sch. Pt. II (with art. 5); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F11 S. 40(1)(ja) inserted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(d); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F12 Word and s. 40(1)(m)(iii) inserted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(e); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F13 Words in s. 40(1)(n) substituted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(f); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F14 S. 40(1)(o)-(q) added by Finance Act 1985 (c. 54, SIF 40:2), s. 24(1),

F15 Word in s. 40(1)(o) substituted (1.1.1993) by Finance (No. 2) Act 1992 (c. 48), s. 14(2), Sch. 3 Pt. I para. 40(g); S.I. 1992/3261, art. 3, Sch. (with art. 4)

F16 S. 40(1)(r) added by S.I. 1987/1427, reg. 11

F17 S. 40(1)(s) added by Finance Act 1989 (c. 26, SIF 40:2), s. 24(9)

F18 S. 40(1A) inserted by Finance Act 1985 (c. 54, SIF 40:2), s. 24(2)

F19 Words in s. 40(1A) substituted (27.7.1993 with effect in relation to any penalty under 1985 c. 54, ss. 13, 14, 14A, 15 other than one to which any person was assessed before 27.7.1993) by 1993 c. 34, s. 49, Sch. 2 para. 3(2)(c)(3)

F20 Words inserted by Finance Act 1985 (c. 54, SIF 40:2) s. 24(3)

F21 Words substituted by Finance Act 1985 (c. 54, SIF 40:2), s. 24(4)

F22 S. 40(3ZA) inserted (27.7.1993 with application in relation to any appeal relating to the input tax that may be credited to any person at the end of a prescribed accounting period beginning on or after 27.7.1993) by 1993 c. 34, s. 46(1)(3)

F23 S. 40(3A)(3B) inserted by Finance Act 1985 (c. 54, SIF 40:2), s. 24(5)

F24 Words substituted by Finance Act 1986 (c. 41, SIF 40:2), s. 10(3)

Modifications etc. (not altering text)

C1 S. 40 extended by Finance Act 1986 (c. 41, SIF 40:2), s. 14(6)

C2 S. 40(1)(c) modified by S.I. 1987/2015, reg. 11

C3 S. 40(1A) extended by Finance Act 1986 (c.41, SIF 40:2), s. 14(6)

Marginal Citations

M1 1979 c. 2.