The First-tier Tribunal decision of Piramal Healthcare UK Ltd (TC8966) (tinyurl.com/ftttc8966) has confirmed HMRC’s policy of disallowing VAT claims unless the imported goods form part of the importer’s onward taxable supplies. This could be damaging UK plc by making it more difficult than it needs to be when attracting business to the UK.
What are the facts of this case?
The appellant in this case was a pharmaceutical company based in the UK. As part of its business it imported goods into the UK for the purposes of undertaking various processes and clinical trials for the owner of the goods.
Piramal took the view that the imported goods were being ‘used for the purpose of its business’ and therefore this entitled it to reclaim the import VAT it had paid to HMRC when the goods arrived in the UK.
This had been an...
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