Kenco Spares Ltd v Revenue & Customs [2012] UKFTT 180 (TC) (08 March 2012)

Kenco Spares Ltd v Revenue & Customs [2012] UKFTT 180 (TC) (08 March 2012)

The appellant failed to provide persuasive evidence that goods left the United Kingdom; relied on forged and incomplete documentation; did not take every reasonable precaution required; therefore, zero rating was not justified and the assessment stands.

Citation
[2012] UKFTT 180 (TC)
Parties
Appellant: Kenco Spares Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 March 2012
Procedural Posture
VAT Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Tax Avoidance, Intra Community Trade, Evidence of Export, Due Diligence

Case Brief

Summary, issues, holding and outcome

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Parties

Kenco Spares Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Final Judgment

  1. 1 Whether the appellant complied with legislative requirements for zero rating of supplies under Regulation 134 of the VAT Regulations 1994 and HMRC Public Notice 725
  2. 2 Whether the appellant took every reasonable precaution required to avoid participation in tax evasion

Ratio Decidendi

The appellant failed to provide persuasive evidence that goods left the United Kingdom; relied on forged and incomplete documentation; did not take every reasonable precaution required; therefore, zero rating was not justified and the assessment stands.

Court Disposition

Appeal dismissed

Orders

  • No order as to costs