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08 November 2016
Issue: 4575 / Categories: Tax cases

Angela McCamley (TC5433)

Lack of export documents

The taxpayer traded as a wholesaler of tyres in Northern Ireland.

The bulk of sales were zero rated as exports to the Republic of Ireland although the customers usually collected their purchases. The business raised invoices recording the Irish VAT numbers and addresses of the customers but failed to obtain any commercial documents that the goods had left the UK. HMRC assessed output tax on the basis of a lack of export evidence concluding the goods had been sold in the UK.

The taxpayer suggested HMRC should first check with customers if it was concerned about loss of revenue.

HMRC’s view was that the onus was on the taxpayer to retain the relevant proof to comply with the legislation.

The First-tier Tribunal disagreed with the taxpayer that HMRC should contact the customers to verify the exports. It was for the taxpayer to prove it...

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