Traderco Ltd v Revenue & Customs [2010] UKFTT 632 (TC) (08 December 2010)

Traderco Ltd v Revenue & Customs [2010] UKFTT 632 (TC) (08 December 2010)

The Tribunal held that the Appellant failed to comply with the mandatory conditions for zero-rating exports under section 30(6) VATA 1994 and Notice 703. The required commercial evidence of export was not obtained within the specified 3-month time limit, and the evidence provided after the fact did not satisfy the legal requirements due to discrepancies and lack of particularity. Therefore, the supplies in question could not be zero-rated and were liable to VAT at the standard rate.

Citation
[2010] UKFTT 632 (TC)
Parties
Appellant: Traderco Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 December 2010
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Export Evidence Requirements, Notice 703 Compliance
Tax Law VAT Zero Rating Export Evidence Requirements Notice 703 Compliance

Case Brief

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Parties

Traderco Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether supplies made to customers outside the member States were eligible to be zero-rated under section 30(6) VATA 1994
  2. 2 Whether the conditions in Notice 703 relating to exports were satisfied, particularly regarding evidence of export within the specified time limit

Ratio Decidendi

The Tribunal held that the Appellant failed to comply with the mandatory conditions for zero-rating exports under section 30(6) VATA 1994 and Notice 703. The required commercial evidence of export was not obtained within the specified 3-month time limit, and the evidence provided after the fact did not satisfy the legal requirements due to discrepancies and lack of particularity. Therefore, the supplies in question could not be zero-rated and were liable to VAT at the standard rate.

Court Disposition

Appeal dismissed

Orders

  • The assessments for VAT raised by HMRC for the periods in question are upheld.