UK HMRC VAT, Excise Interpretation

On Apr. 15, UK HMRC issued brief on VAT, excise law interpretation.

  • UK HMRC issued Revenue and Customs Brief 4 (2024) on interpretation of VAT and excise law from Jan. 1, 2024, in light of changes by Retained EU Law (Revocation and Reform) Act 2023 and VAT and excise bespoke solution in Finance Act 2024 (FA 2024).
  • Both came into effect on Jan. 1, 2024; brief explains that UK VAT and excise legislation means the same as it did on Dec. 31, 2023, so will be interpreted in the same way.
  • Background
  • Retained EU Law (Revocation and Reform) Act removes the supremacy of EU law.
  • However, in order to make sure there’s stability, it was made clear when it was introduced that a bespoke solution would be introduced for VAT and excise regimes.
  • The bespoke solution in Finance Act 2024, S 28, outlines how VAT, excise legislation should be interpreted in light of Retained EU Law (Revocation and Reform) Act.
  • Retained EU Law (Revocation and Reform) Act, bespoke solution in effect Jan 1, 2024.
  • VAT and Excise Law Interpretation
  • UK HMRC policy for VAT and excise is unchanged; FA 2024, S 28 means UK VAT and excise legislation will continue to be interpreted in same way as before Jan. 1, 2024.
  • Drawing on rights and principles that have always applied for interpreting UK law.
  • Means principle of consistent interpretation (also known as Marleasing principle) continues to apply in interpreting VAT and excise legislation; but businesses will no longer be able to rely on the direct effect of EU law; no longer be possible for any part of UK legislation to be quashed or disapplied on the basis it’s incompatible with EU law.
  • UK law is now supreme in the UK; this does not lead to any changes in HMRC policy.
  • Effectiveness
  • The legislation took effect from Jan. 1, 2024.

Regulators UK HMRC
Entity Types Auditor; Corp
Reference Ntc R&CB 4/2024, 4/15/2024; REUL(RR)A 2023 (UK); FA 2024 (UK)
Functions Accounting; Compliance; Financial; Legal; Operations; Reporting; Tax
Countries United Kingdom
Category Central Government
Products Corporate
Regions EMEA
Rule Type Final
Rule Date 4/15/2024
Effective Date 1/1/2024
Rule Id 208268
Linked to N/A
Reg. Last Update 4/15/2024
Report Section UK

Last substantive update on 04/17/2024