25 Mar 2018

Distance selling

14 November 2017

CRC v SDI (Brook EU) Ltd; Sportsdirect.com Retail Ltd, Upper Tribunal (Tax and Chancery Chamber), 11 August 2017

Appealable matter within an HMRC letter to taxpayer

In 2010, Sports Direct asked HMRC whether the VAT distance selling rules would apply to goods sold to customers in other EU member states. HMRC confirmed that, because a separate company would deliver the goods, UK VAT would apply. As a result, Sports Direct accounted for UK VAT on cross-border intra-EU sales to non-VAT registered customers.

In January 2016, HMRC reversed that decision. This was on the basis that it been advised by the EU VAT Committee – an advisory body set up by the European Commission to provide guidance on applying the EU VAT Directive – that the use ...

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