- The FTT partially allowed Yourway Transport Ltd’s appeal against HMRC’s denial of import VAT credit on trial drugs.
- VAT credit is permitted for import VAT on trial drugs destined for the EU, but not for those destined for the UK or non-EU countries.
- The appellant acted as an agent in its own name for biopharma clients, and supplies of trial drugs to EU clinics (for no consideration) were deemed a ‘supply’ under VAT law.
- No legitimate expectation argument succeeded for VAT recovery on non-EU-destined drugs.
- The appeal was allowed in part: VAT credit is only due for EU-destined goods.
Source: claritaxnews.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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