Metatron DOO v The Commissioners for HMRC
Decision date: 25 January 2024
Neutral citation: [2024] UKFTT 115 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This case concerns HMRC's strike‑out applications against VAT refund appeals by a Slovenian VAT‑registered business that bought goods from UK sellers via eBay. The Tribunal held it had jurisdiction to hear appeals against refusals under the VATA statutory refund scheme but struck out the VATA‑based claims as having no reasonable prospect of success (regulation 173B / Notice 723A excluded recovery where VAT was charged on supplies dispatched to another member state). The Tribunal also held it had no jurisdiction to entertain a direct (Reemtsma) recovery claim and struck that part out, with no power to transfer it to a court.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
A decision refusing repayment under the statutory refund scheme which determines that a claim does not comply with the scheme falls within s.83(1)(ha) VATA and is therefore within the Tribunal’s jurisdiction; where regulation 173B (and the associated guidance in Notice 723A) excludes repayment for supplies on which VAT was charged but the goods were dispatched to another member state, such VATA‑scheme claims have no reasonable prospect of success and may be struck out under Rule 8(3)(c). Rule 5(3)(k)(i) permits transfer to another tribunal but does not authorise transfer of a Reemtsma/direct recovery claim to a court.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment notes that whether a county court remedy for Reemtsma‑type recovery survives post‑Brexit is a complex matter better determined by the county court, and the Tribunal should not decide that issue here. It also observes that VATA notices (e.g. Notice 723A) effectively operate as conditions on when refund claims may be brought.