UK Tax Tribunal Rules Against Zero Percent VAT for Mobile Phone Exporter to EU Customers

• The UK First-Tier Tax Tribunal issued a judgment on March 12 in Case No. TC09460.
• The case involved a VAT-registered company and its director.
• The company was involved in importing and exporting mobile phones.
• The Tax Agency denied a zero percent VAT rate on the company’s supplies to EU customers.
• The taxpayers argued for a zero percent VAT rate or that customers were liable for VAT via reverse charge.
• The Tax Agency claimed the transactions were fraudulent and reverse charge was not applicable.
• The Tribunal found the taxpayers did not meet the threshold to dismiss the fraud claim.
• The Tribunal ruled the reverse charge procedure did not apply and the company was liable for VAT.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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