Value Added Tax Act 1994 section 84

Further provisions relating to appeals

Section 84 sets out the detailed procedural rules and conditions that govern VAT appeals under section 83, including requirements to pay disputed tax before an appeal is heard, hardship provisions, and the scope of the tribunal's powers.

• For certain categories of appeal, the disputed VAT must be paid or deposited with HMRC before the appeal can proceed, unless the appellant can demonstrate that paying would cause hardship
• Where HMRC has denied input tax credit on items in the nature of luxuries, amusements or entertainment, the tribunal can only overturn the decision if it was unreasonable
• Many appeal types apply a "reasonableness" test, meaning the tribunal will only allow the appeal if it considers HMRC could not reasonably have reached its decision
• The tribunal's power to vary penalties, interest and surcharges is limited to reducing them to the correct amount under the relevant statutory provisions