Teleos Plc & Ors, R (on the application of) v Customs and Excise

Teleos Plc & Ors, R (on the application of) v Customs and Excise

The correct interpretation of Article 28 of the Sixth Directive is essential to determine whether the claimants are liable for VAT; the matter is referred to the European Court of Justice. No concluded view on abuse of power or fairness can be reached until the ECJ rules. The claimants acted reasonably and could not...

Source-derived case information.

Parties
Claimant: Teleos plc and 13 others; Defendant: The Commissioners of HM Customs & Excise
Jurisdiction
England and Wales
Judgment Date
06 May 2004
Procedural Posture
Judicial Review / Judgment With Reference to European Court of Justice
Outcome
Reference to European Court of Justice; no final determination on VAT liability or abuse of power
Legal Topics
VAT Exemption, Intra Community Trade, Zero Rating, Public Law Fairness, Legitimate Expectation, Abuse of Power, Statutory Interpretation
Tax Law European Union Law Administrative Law VAT Exemption Intra Community Trade Zero Rating Public Law Fairness Legitimate Expectation +2 more

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Parties

Teleos plc and 13 others

Claimant

The Commissioners of HM Customs & Excise

Defendant

Procedural Posture

Judicial Review / Judgment With Reference to European Court of Justice

Legal Issues

  1. 1 Whether Article 28 of Council Directive 77/388/EEC requires actual removal of goods from the Member State of supply for VAT exemption
  2. 2 Whether UK domestic legislation and practice properly implement Article 28c(A)(a)
  3. 3 Whether the Commissioners can assess innocent traders for VAT if goods are not removed, despite documentary evidence

Ratio Decidendi

The correct interpretation of Article 28 of the Sixth Directive is essential to determine whether the claimants are liable for VAT; the matter is referred to the European Court of Justice. No concluded view on abuse of power or fairness can be reached until the ECJ rules. The claimants acted reasonably and could not have discovered the falsity of the CMRs. Liability cannot depend on qualitative judgment of their conduct.

Court Disposition

Reference to European Court of Justice; no final determination on VAT liability or abuse of power

Orders

  • Issue as to interpretation of Article 28 referred to European Court of Justice
  • No concluded view on abuse of power or fairness pending ECJ ruling