In Coin-A-Drink Limited [2017] UKUT 0211 (TCC) the Upper Tribunal (UT) upheld the decision that overpaid VAT was subject to corporation tax.

  • The company operated vending machines and incorrectly treated its sales as standard rated.
  • When it was agreed that the sales were zero rated the company recovered the “output tax” paid to HMRC.
  • The company argued that charging the additional income to corporation tax fettered its ECJ right to have the overpayment refunded in full.
  • The UT heard out the taxpayer, but then ruled in favour of HMRC without requiring more than their skeleton argument.


A novel approach but flawed. Ordinarily the difficult part is getting HMRC to repay output tax overpaid, as HMRC tends to use the unjust enrichment argument.


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Coin-A-Drink Limited [2017] UKUT 0211 (TCC)


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