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VAT voluntary retrospective registration refusal.
My client earned a substantial single fee in 2015 for a service to a US person. At that time no VAT registration was considered because the related UK costs were minimal. My client had no other business activities in his own name. In 2017 a dispute arose in connection with the service involving the payment of legal fees.
A VAT registration application was submitted to run from 2015. HMRC refused on the ground that my client is not currently seeking to make supplies. This decision seems irrational but is it correct in law? Could EU legislation offer any assistance?
Query 19 238– Dunedin.
Reply by Bergamo
The term ‘taxable person’ is restricted to one who is registered for VAT.
The reference to a service being supplied to a US person suggests that the place of supply was outside the UK and...
