Tribunal Rules Advance Payments Not Subject to Import VAT in Turkish Food Supplies Case

• The case involved Turkish Food Supplies Ltd and HMRC regarding import VAT on bottled water from Turkey.
• HMRC claimed TFS owed additional import VAT on the bottled water.
• TFS argued that only a portion of the payment was for the bottled water, with the rest being a hedge payment.
• The FTT ruled in favor of TFS, allowing the hedge payment to be deducted from the customs value.
• The decision emphasized the complexity of import VAT valuation and the need for proper documentation.

Source: saffery.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.