- The UK Tax Tribunal ruled on a case involving VAT fraud by a labor supplier.
- The taxpayer, a VAT registered company, claimed input VAT deductions against the loss caused by the supplier’s fraud.
- The Tax Agency denied the deductions, sought deregistration, and imposed penalties, claiming the taxpayer knew or should have known about the fraud.
- The Tax Tribunal disagreed, finding the Tax Agency failed to prove the taxpayer’s knowledge of the fraud.
Source: news.bloombergtax.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.
