The taxpayer, BMW Shipping Agents Ltd (BMW) describes themselves as “international freight forwarders” and are based in Southampton. The issue relates to the import of goods from China with the import VAT totalling just over £3million.
In terms of the goods, the taxpayer immediately forwarded the goods to the ultimate recipients in Europe (at the time other Member States). BMW submitted Customs declarations claiming onward supply relief (OSR). For background OSR removes any liability to import VAT where the goods are imported into the UK and the UK VAT registered importer makes a zero rated supply of those goods to a person registered for VAT in another EU member state (note – this was prior to the UK leaving the EU).
Source KPMG
