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

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

The Appellant was correctly assessed to VAT on the acquisition because it used its UK VAT number, making the acquisition chargeable in the UK. The Appellant was not entitled to input tax credit as it failed to provide objective evidence that the goods were acquired for onward taxable supplies, and the documentation provided was found to be unreliable or fabricated.

Citation
[2010] UKFTT 163
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 Assessment Appeal / First Tier Tribunal (tax Chamber) Decision
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

Case Brief

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Parties

Mexcom Limited

Appellant

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

Respondents

Procedural Posture

VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether VAT is chargeable on the 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

The Appellant was correctly assessed to VAT on the acquisition because it used its UK VAT number, making the acquisition chargeable in the UK. The Appellant was not entitled to input tax credit as it failed to provide objective evidence that the goods were acquired for onward taxable supplies, and the documentation provided was found to be unreliable or fabricated.

Court Disposition

Appeal dismissed

Orders

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