UK VAT Recovery: Legal Ownership Required to Reclaim Import VAT, Tribunal Confirms

Only the legal owner of imported goods can reclaim UK import VAT; cost-bearing alone is not enough.
The TSI Instruments Ltd v HMRC case confirmed that import VAT recovery requires legal ownership at the time of import.
Businesses must ensure contracts and documentation clearly establish ownership to support VAT claims.
Importers should review supply chain arrangements to verify ownership status and compliance with VAT rules.
The ruling sets a clear precedent: paying import VAT or using goods in business does not guarantee VAT deduction rights without ownership.

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.