The claimant challenged a charge to interest on unpaid VAT. He had made a return but later established that the goods had been exported to an EU member state and thus were zero-rated.
Held: The was still liable to pay interest. The subsequent establishment of zero-rating did not help him to avoid paying interest on the previous standard rate assessment. The goods did not become zero-rated ab initio, but were standard rated until the became zero-rated at the point when their destination was established.
Lightman J
Times 01-Apr-2003, Gazette 01-May-2003
Value Added Tax Regulations 1995 (1995 No 2518) 134
England and Wales
Updated: 20 August 2021; Ref: scu.180395