Legitimate Expectation in Tax Law: Treasures of Brazil Ltd v HMRC [2024] UKFTT 929
- Treasures of Brazil Ltd applied for voluntary VAT registration with an effective start date of 1 October 2022
- HMRC advised ToB to wait for VAT registration confirmation before charging customers for VAT
- ToB did not charge VAT until receiving registration number in December 2022
- HMRC sought payment from ToB for not charging output VAT from 1 October 2022
- ToB appealed to the FTT, arguing legitimate expectation due to HMRC’s communication
- FTT held jurisdiction to consider legitimate expectation argument
- FTT concluded ToB had a legitimate expectation not to charge VAT until registration confirmed based on HMRC’s email
- Appeal was allowed, highlighting that taxpayers can raise legitimate expectation arguments before the FTT.
Source: rpclegal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
