Mexcom Ltd v Revenue & Customs [2010] UKFTT 163 (TC) (13 April 2010)

Mexcom Ltd v Revenue & Customs [2010] UKFTT 163 (TC) (13 April 2010)

VAT is chargeable on the acquisition because the Appellant used its UK VAT registration number, and the Appellant is not entitled to input tax credit as it failed to provide objective proof of onward taxable supply.

Citation
[2010] UKFTT 163 (TC)
Parties
Appellant: Mexcom Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)
Jurisdiction
United Kingdom
Judgment Date
13 April 2010
Procedural Posture
VAT Appeal / First Tier Tribunal (tax), Final Judgment
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Acquisition VAT, Input Tax Credit, Triangulation, Burden of Proof
Tax Law Value Added Tax Acquisition VAT Input Tax Credit Triangulation Burden of Proof

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Parties

Mexcom Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax), Final Judgment

Legal Issues

  1. 1 Whether VAT is chargeable on an acquisition of goods by the Appellant where the goods had not been removed to the UK but a UK VAT registration number had been used in the acquisition
  2. 2 Whether the Appellant is entitled to credit for input tax in relation to the VAT charged on the acquisition

Ratio Decidendi

VAT is chargeable on the acquisition because the Appellant used its UK VAT registration number, and the Appellant is not entitled to input tax credit as it failed to provide objective proof of onward taxable supply.

Court Disposition

Appeal dismissed

Orders

  • Assessment to VAT in the sum of £50,638 plus interest upheld
  • Misdeclaration penalty of £7,595 upheld