- Yourway Transport Limited provided logistics for biopharma companies, importing drugs for clinical trials mainly in Europe.
- HMRC denied Yourway the right to recover import VAT on the drugs, arguing Yourway was not the owner.
- The First-tier Tribunal (FTT) ruled that, under pre-Brexit VAT law, Yourway could recover import VAT on drugs delivered to EU member states, as it was deemed to be acting as principal.
- For drugs destined for the UK and non-EU countries, the FTT held that import VAT was not recoverable due to lack of equivalent legislative provisions.
- The FTT partially allowed Yourway’s appeal, permitting VAT recovery only for EU-destined drugs.
Source: taxscape.deloitte.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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