- A recent FTT decision warns businesses about VAT fraud in supply chains.
- Ignorance of VAT fraud is not a sufficient defense under the Kittel principle.
- Zed-UK Ltd was denied over £194,000 in input VAT and faced a £58,000 penalty.
- The total liability for Zed-UK Ltd exceeded £250,000.
- Businesses must conduct robust due diligence and VAT risk management.
Source: vatcalc.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.
