- The First-tier Tribunal (FTT) issued a decision on VAT recovery for non-owners of imported goods, supporting HMRC’s policy.
- The case involved Piramal Healthcare, which imports and distributes pharmaceutical products without owning them.
- HMRC disallowed Piramal’s input tax recovery, stating that only the owner can recover import VAT.
- The FTT ruled in favor of HMRC, upholding the policy and allowing HMRC to assess Piramal before the policy’s official date.
- This decision impacts businesses importing goods they don’t own, requiring them to review their import procedures. It also raises concerns about HMRC’s entitlement to assess VAT before the effective date of a new policy.
Source RSM
Latest Posts in "United Kingdom"
- UK Supreme Court Rules Input VAT on Share Sale Professional Fees Irrecoverable for Holding Companies
- Isle of Man to Raise Plastic Packaging Tax Rate from April 2026
- Supreme Court Upholds VAT Restrictions on Share Sale Costs in Hotel La Tour Case
- UK VAT Gap Rises to £11.9bn in 2024/25, Up from £8.9bn Last Year
- Change in the VAT treatment of supplies of locum medical practitioners
