MCBRAIDA PLC v Revenue & Customs (VAT - ZERO-RATING : Transport) [2019] UKFTT 43 (TC) (22 January 2019)

MCBRAIDA PLC v Revenue & Customs (VAT - ZERO-RATING : Transport) [2019] UKFTT 43 (TC) (22 January 2019)

Supplies of aircraft engine parts qualify for zero-rating under paragraph 2A of Group 8 to Schedule 8 of the Value Added Tax Act 1994 if, at the time of supply, the parts are of a kind ordinarily installed or incorporated in, and are to be installed or incorporated in, the propulsion, navigation, or communication systems, or the general structure of a qualifying aircraft, and sufficient evidence exists to establish this. The Tribunal found that the appellant had sufficient evidence for some supplies but not all, based on customer confirmations, end-use certificates, and documentary evidence.

Citation
[2019] UKFTT 43
Parties
Appellant: MCBRAIDA PLC; Respondents: THE COMMISSIONERS FOR HER MAJESTY'S REVENUE & CUSTOMS
Jurisdiction
United Kingdom
Judgment Date
22 January 2019
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
VAT Zero Rating, Aircraft Parts, Evidence Requirements, Export Conditions
Tax Law European Union Law VAT Zero Rating Aircraft Parts Evidence Requirements Export Conditions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

MCBRAIDA PLC

Appellant

THE COMMISSIONERS FOR HER MAJESTY'S REVENUE & CUSTOMS

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether supplies of aircraft engine parts qualify for zero-rating under paragraph 2A of Group 8 to Schedule 8 of the Value Added Tax Act 1994
  2. 2 Whether sufficient evidence exists to establish the conditions for zero-rating
  3. 3 Whether the supplied parts were to be installed or incorporated in qualifying aircraft

Ratio Decidendi

Supplies of aircraft engine parts qualify for zero-rating under paragraph 2A of Group 8 to Schedule 8 of the Value Added Tax Act 1994 if, at the time of supply, the parts are of a kind ordinarily installed or incorporated in, and are to be installed or incorporated in, the propulsion, navigation, or communication systems, or the general structure of a qualifying aircraft, and sufficient evidence exists to establish this. The Tribunal found that the appellant had sufficient evidence for some supplies but not all, based on customer confirmations, end-use certificates, and documentary evidence.

Court Disposition

Appeal allowed in part

Orders

  • Zero-rating granted for supplies where sufficient evidence was provided and conditions met under paragraph 2A
  • Zero-rating denied for supplies where evidence was insufficient or conditions not met