Education Training Collective v The Commissioners for HMRC

Facts

The appellant, a provider of education and training, appointed a construction company in June 2022 as principal contractor for a project at one of its colleges. The supplier charged VAT at the standard rate and accounted for it to HMRC. HMRC later confirmed, on the information the appellant had submitted, that the supply qualified for zero rating. The appellant said that the supplier, having seen that confirmation, agreed to refund the VAT but did not do so and then entered administration. On 2 May 2024 the appellant asked HMRC to refund the VAT directly, relying on the principle recognised in Reemtsma Cigarettenfabriken GmbH v Ministero delle Finanze that a purchaser must be able to claim against the tax authorities where recovery from the supplier is impossible or excessively difficult. HMRC refused, and on 11 February 2025 rejected further submissions. The appellant sought a statutory review, and on 5 September 2025 HMRC's review conclusion found that the decision was not an appealable decision, because section 80 of the Value Added Tax Act 1994 allows claims only by the supplier. The appellant commenced an appeal to the First-tier Tribunal on 3 October 2025, and the question of jurisdiction was heard as a preliminary issue on 10 September 2026.