Ampleaward Ltd v Revenue & Customs (VAT - SUPPLY : Place of) [2018] UKFTT 715 (TC) (11 December 2018)

Ampleaward Ltd v Revenue & Customs (VAT - SUPPLY : Place of) [2018] UKFTT 715 (TC) (11 December 2018)

Section 18(3) VATA does not apply to acquisitions into non-UK bonded warehouses; section 13(3) applies, deeming the place of supply to be the UK where the UK VAT registration is used and VAT is not proved paid in the arrival state; fall-back VAT assessed under s 13(3) is not recoverable as input tax unless VAT was properly accounted for in the arrival member state; UK law must be interpreted to conform with Article 41 PVD and Facet CJEU ruling.

Citation
[2018] UKFTT 715 (TC)
Parties
Appellant: Ampleaward Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
11 December 2018
Procedural Posture
VAT Appeal / First Tier Tribunal (tax) Preliminary Hearing
Outcome
Appeal dismissed
Legal Topics
VAT, Place of Supply, Acquisition VAT, Warehousing Regime, EU VAT Directive Implementation
Tax Law European Union Law VAT Place of Supply Acquisition VAT Warehousing Regime EU VAT Directive Implementation

Case Brief

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Parties

Ampleaward Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax) Preliminary Hearing

Legal Issues

  1. 1 Does VATA s 18(3) take precedence over VATA s 13(3)?
  2. 2 Is acquisition VAT due under s 13(3) recoverable as input tax?
  3. 3 Is s 18(7) limited to goods warehoused in the UK?

Ratio Decidendi

Section 18(3) VATA does not apply to acquisitions into non-UK bonded warehouses; section 13(3) applies, deeming the place of supply to be the UK where the UK VAT registration is used and VAT is not proved paid in the arrival state; fall-back VAT assessed under s 13(3) is not recoverable as input tax unless VAT was properly accounted for in the arrival member state; UK law must be interpreted to conform with Article 41 PVD and Facet CJEU ruling.

Court Disposition

Appeal dismissed

Orders

  • Assessment for acquisition VAT of £1,308,648 upheld
  • No right to input tax recovery unless VAT proved paid in arrival member state