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 VAT 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, qualifying aircraft as defined by statute....

Source-derived case information.

Citation
[2019] UKFTT 43 (TC)
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
Zero Rating, Aircraft Parts, Evidence Requirements, Export Conditions, Penalty Assessment
Tax Law VAT Zero Rating Aircraft Parts Evidence Requirements Export Conditions Penalty Assessment

Source-derived case record

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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 VAT 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 zero-rating conditions
  3. 3 Whether the supplied parts are to be installed or incorporated in qualifying aircraft

Ratio Decidendi

Supplies of aircraft engine parts qualify for VAT 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, qualifying aircraft as defined by statute. 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. Zero-rating applies only where the substantive requirements are met and evidence is adequate.

Court Disposition

Appeal allowed in part

Orders

  • Zero-rating granted for supplies where evidence and statutory conditions are satisfied
  • Zero-rating denied for supplies lacking sufficient evidence or not meeting statutory conditions