Unjust enrichment: Some items to consider: Factors supporting the unjust enrichment defence
Some or all of the following factors must be present if unjust enrichment is to be successfully invoked
- Customers are VAT registered
- Customers are mainly business
- The market in which the claimant is operating is competitive
- All the players in the sector overstated VAT on the product in question
- The product is price inelastic (it’s buyers are not normally price sensitive), this includes necessities and addictive goods
- Prices are changed when VAT is introduced
- The product has no close substitutes or very few
- The incorrect VAT treatment has continued over a long period of time.
If all of the above elements are apparent in a claim it is very likely we will be able to invoke successfully the unjust enrichment defence.