Quality Import Export Ltd v Revenue & Customs [2010] UKFTT 47 (TC) (28 January 2010)

Quality Import Export Ltd v Revenue & Customs [2010] UKFTT 47 (TC) (28 January 2010)

The appellant's transaction formed part of a chain connected with VAT fraud, and the appellant knew of this connection at the time of entering into the transaction. Therefore, HMRC is entitled to refuse repayment of input tax under established European and domestic case law.

Citation
[2010] UKFTT 47
Parties
Appellant: Quality Import Export Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
28 January 2010
Procedural Posture
VAT Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT, MTIC Fraud, Input Tax Recovery, Fraudulent Evasion of VAT, Due Diligence, Constructive Knowledge
Tax Law European Union Law VAT MTIC Fraud Input Tax Recovery Fraudulent Evasion of VAT Due Diligence Constructive Knowledge

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Parties

Quality Import Export Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / Final Judgment

Legal Issues

  1. 1 Whether the appellant is entitled to recover input tax in a transaction chain connected with VAT fraud
  2. 2 Whether the appellant knew or should have known the transaction was connected with VAT fraud

Ratio Decidendi

The appellant's transaction formed part of a chain connected with VAT fraud, and the appellant knew of this connection at the time of entering into the transaction. Therefore, HMRC is entitled to refuse repayment of input tax under established European and domestic case law.

Court Disposition

Appeal dismissed

Orders

  • HMRC's refusal to repay input tax of £89,250 is upheld
  • No entitlement to input tax recovery for the transaction in question