- The Tribunal ruled that Yourway Transport Limited (YTL) could recover import VAT on goods it imported as agent in its own name for EU-destined consignments, even though it did not own the goods.
- This was due to VAT legislation deeming YTL as making the supply itself (section 47(1) VATA) and treating the movement of goods to the EU as a taxable supply (Schedule 4 VATA), allowing VAT recovery.
- For goods remaining in the UK or shipped outside the EU, YTL could not recover import VAT, as there was no deemed taxable supply and no sufficient link to its taxable services.
- The Tribunal rejected YTL’s argument based on legitimate expectation, finding no clear representation from HMRC.
- The decision clarifies that logistics businesses acting as agents in their own name may recover import VAT on EU-destined goods, but not for UK or non-EU consignments.
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.
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