Reconsiderations and appeals: appeals against refusal to pay repayment supplement
There is no specific provision to allow an appeal against a refusal to pay repayment supplement (RS) as it is not listed in section 83 VATA. However, in 1987 a tribunal allowed an appeal made by Richard Costain Ltd to go forward. This relied on VAT Act 1994 section 79(5).
Section 79(5)(a) VATA provides that in the case of a repayment return, RS is treated as an amount due by way of a credit under section 25(3) VATA, see VATRS03300.
The tribunal considered that section 79(5)(a) meant that RS should be treated in the same way as a VAT credit, and consequently the appeal could be heard under the provision of VAT Act 1994 section 83(c).
Now as a matter of policy we do not contest the right of appeal against a decision not to pay RS in relation to repayment returns.
RS is not however in itself a free standing matter, it merely increases the VAT credit or claim on which it is due.
All tribunal appeals are dealt with by the Repayment Supplement team.
Section 79(5)(b) to (e) provides that in the case of claims under section 33, 33A, 33B and 33C a supplement is treated as a refund under those provisions (see VATRS03300) and is not therefore a VAT credit under section 25(3). None of these provisions are listed within section 83 VATA as an appealable decision, and as they are not treated as a VAT credit, the conclusion is that RS in relation to these claims is not an appealable decision. TAA should be contacted in the event an appeal is lodged.