United Kingdom Tax Tribunal Clarifies Zero Percent VAT Rate on Company’s Supplies to EU Customers

The United Kingdom First-Tier Tax Tribunal March 12 issued a judgment in Case No. TC09460, clarifying the application of a zero percent VAT rate on a company’s supplies to EU customers. The taxpayers were a VAT-registered company and its director. The company was engaged in the import and export of mobile phones. The Tax Agency denied the company a zero percent VAT rate on its supplies to EU customers. The taxpayers argued that either the company was subject to a zero percent VAT rate or that the company’s customers were liable for the VAT due to the reverse charge procedure. ...