Cohen v Revenue & Customs [2010] UKFTT 631 (TC) (08 December 2010)

Cohen v Revenue & Customs [2010] UKFTT 631 (TC) (08 December 2010)

Zero-rating for VAT purposes requires strict compliance with the evidential conditions set out in Notice 703, which have the force of law. The appellant failed to provide adequate proof of export for eight of the ten invoices in dispute, as the evidence did not clearly identify the export destination and/or the mode of transport and route of export movement. Only two invoices (1118 and 1177) met the evidential requirements, so the assessment was upheld in part and reduced accordingly.

Citation
[2010] UKFTT 631 (TC)
Parties
Appellant: Michael Cohen; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (Value Added Tax)
Jurisdiction
United Kingdom
Judgment Date
08 December 2010
Procedural Posture
VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed in part
Legal Topics
VAT Zero Rating, Exports, Proof of Export, Notice 703 Compliance
Tax Law VAT Zero Rating Exports Proof of Export Notice 703 Compliance

Case Brief

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Parties

Michael Cohen

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 supplies made to customers outside the member States were eligible to be zero-rated under section 30(6) VATA
  2. 2 Whether the applicable conditions having the force of law in Notice 703 relating to exports were satisfied

Ratio Decidendi

Zero-rating for VAT purposes requires strict compliance with the evidential conditions set out in Notice 703, which have the force of law. The appellant failed to provide adequate proof of export for eight of the ten invoices in dispute, as the evidence did not clearly identify the export destination and/or the mode of transport and route of export movement. Only two invoices (1118 and 1177) met the evidential requirements, so the assessment was upheld in part and reduced accordingly.

Court Disposition

Appeal allowed in part

Orders

  • Assessment reduced to charge VAT of £4,702.80; interest to be recalculated accordingly
  • Appeal allowed in relation to invoices 1118 and 1177; assessment upheld for the remaining invoices