D and J Grant v Revenue and Customs (VAT - INPUT TAX : Evidence for claim) [2016] UKFTT 442 (TC) (21 June 2016)

D and J Grant v Revenue and Customs (VAT - INPUT TAX : Evidence for claim) [2016] UKFTT 442 (TC) (21 June 2016)

No supply of goods occurred as the turbines were not delivered and title did not pass; therefore, the VAT paid cannot be claimed as input tax under the Value Added Tax Act 1994. There was insufficient evidence of fraud to invoke the Kittel or Bonik principles.

Citation
[2016] UKFTT 442
Parties
Appellant: D & J Grant; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 June 2016
Procedural Posture
VAT Input Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Input Tax, Supply of Goods, Fraud, Insolvency
Tax Law Value Added Tax Input Tax Supply of Goods Fraud Insolvency

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Parties

D & J Grant

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether VAT of £93,800 paid on undelivered wind turbines can be claimed as input tax
  2. 2 Whether a supply of goods occurred under the Value Added Tax Act 1994
  3. 3 Whether evidence of fraud entitles input tax recovery

Ratio Decidendi

No supply of goods occurred as the turbines were not delivered and title did not pass; therefore, the VAT paid cannot be claimed as input tax under the Value Added Tax Act 1994. There was insufficient evidence of fraud to invoke the Kittel or Bonik principles.

Court Disposition

Appeal dismissed

Orders

  • Input tax claim of £93,800 disallowed