Value Added Tax Act 1994, Schedule 11, paragraph 5

Recovery of VAT, etc

SCHEDULE 11 Administration, collection and enforcement

5 (1) VAT due from any person shall be recoverable as a debt due to the Crown.

(2) Where an invoice shows a supply of goods or services as taking place with VAT chargeable on it, there shall be recoverable from the person who issued the invoice an amount equal to that which is shown on the invoice as VAT or, if VAT is not separately shown, to so much of the total amount shown as payable as is to be taken as representing VAT on the supply.

(3) Sub-paragraph (2) above applies whether or not—

(a) the invoice is a VAT invoice issued in pursuance of paragraph 2(1) above; or

(b) the supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; or

(c) the person issuing the invoice is a taxable person;

and any sum recoverable from a person under the sub-paragraph shall, if it is in any case VAT be recoverable as such and shall otherwise be recoverable as a debt due to the Crown.

F1900(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1900(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in Schedule 11, paragraph 5 4

VAT

“VAT” means value added tax charged in accordance with this Act;

Defined in s.96(1) · see it in the full Act
invoice

“invoice” includes any document similar to an invoice;

Defined in s.96(1) · see it in the full Act
VAT invoice

“VAT invoice” has the meaning given by section 6(15);

Defined in s.96(1) · see it in the full Act

(15) In this Act “VAT invoice” means such an invoice as is required under paragraph 2A of Schedule 11, or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued.

Defined in s.6(15) · see it in the full Act
taxable person

“taxable person” means a person who is a taxable person under section 3;

Defined in s.96(1) · see it in the full Act

Cases considering Schedule 11, paragraph 5 8

Total Network SL (a company incorporated in Spain) (Original Respondents and Cross-appellants) v Her Majesty's Revenue and Customs (suing as Commissioners of Customs and Excise) (Original Appellants and Cross-respondents)

[2008] UKHL 19 · 12 March 2008Defines

VAT due from a person is recoverable as a debt due to the Crown. The provision supplied statutory recovery against liable taxpayers but not a compensatory remedy against Total (see paras [14]; [29]; [134]).

Mercy Global Consult Ltd (In Liquidation) v Abayomi Adegbuyi-Jackson & Ors

[2023] EWHC 749 (Ch) · 31 March 2023

The court provisionally considered that VAT shown on self-billed invoices could be recoverable from the supplier as a Crown debt, even if the underlying supply was VAT-exempt. (see paras [75]-[82]) The court relied on paragraph 5(3) to emphasise that recovery may arise whether or not the invoice is a VAT invoice, the supply occurs, or VAT was chargeable. (see paras [75]; [79]-[82])

Customs & Excise v Total Network SL

[2005] EWHC 1 (QB) · 10 January 2005Limits

Recognises that VAT due from a person may be recovered by civil action as a debt due to the Crown, but concludes that this statutory route did not displace recovery of fraudulently induced payments through conspiracy. (see paras [29], [40]-[41])

What each judgment says about Schedule 11, paragraph 5 is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F1900Sch. 11 para. 5(4)-(10) repealed (1.7.1997) by 1997 c. 16, 113, Sch. 18 Pt. V(2), Note; S.I. 1997/1433, art. 2