PTSC Union v JB Global Limited (In Administration) UKEAT/0212/20/VP

Appeal against an ET decision which included VAT in a wasted costs order. Appeal allowed.

The ET made a wasted costs order against the Claimant's union representative after he failed to comply with orders. The ET included the VAT element in the award which was appealed.

The EAT allowed the appeal. It was well-established, at least since Raggett v John Lewis, that where a party has incurred costs which they are seeking to recover by way of a costs order, and has had to pay VAT in respect of those costs, the Tribunal should not include VAT in its costs award, if the party making the costs claim is itself registered for VAT and, therefore, able to recover the VAT element as an input. Because it was obvious the Respondent was registered for VAT because it was of that kind of size, the VAT exclusive amount was substituted.

Published: 27/10/2021 16:05

Sign up for free email alerts

Email address
First name
Last name
Receive daily
Receive weekly
I agree to this site's terms and conditions