VAT - Denial of zero-rating on fraudulent car sales to the Republic of Ireland.

FULL DECISION: TAYLORS SERVICE CENTRES LIMITED


The Appellant, Taylors Service Centres Ltd appealed against two decisions of HMRC to refuse zero rating for VAT purposes on the supply it made of certain motor vehicles to the Republic of Ireland. The sales took place in the periods 10/12 and 01/13 and in the periods 07/12 and 04/13. The amounts denied are £266,730 and £ 166,245 respectively.


HMRC denied the zero rating on two grounds. First, they contend that the transactions were connected with a tax fraud, and Taylors did not take all reasonable steps to prevent its own participation in the fraud and knew or should have known that the transactions were part of a tax fraud. Secondly, HMRC denied the zero rating on the basis that Taylors failed to obtain and/or provide sufficient evidence to establish that the supplies satisfied the conditions for zero rating.


The appeal against both decision were dismissed.