- The case involved Procurement International Ltd and focused on whether goods movement qualified as a zero-rated export
- Both parties agreed on the facts of the case
- PIL’s business involved supplying goods for reward recognition programs
- Goods were shipped directly from PIL’s UK warehouse to international reward recipients
- PIL zero-rated these overseas deliveries, handling all delivery, customs, and associated costs
- HMRC challenged this, claiming these should be standard-rated as the supply occurred within the UK
- PIL argued that the goods were zero-rated as the supply involved international delivery
- The First-Tier Tribunal ruled in favor of PIL, recognizing the supply as zero-rated exports
- The Tribunal determined that PIL was the exporter and the goods were supplied outside the UK
- The ruling allowed the appeal and the HMRC’s assessment was withdrawn
- Relevant legislation includes Section 6(2) and Section 7 of the VAT Act 1994, defining the time and basis of supply for goods involving removal
Source: deeksvat.co.uk
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.
