HMRC raised an assessment for £80,096 in February 2019 to disallow input tax claimed on the purchase of doors by a company called The Door Specialist Ltd (TDS) (case TC8132). But surely that cannot be correct – why can’t a door company claim input tax on buying doors?
HMRC’s argument was that none of the doors were used for any ‘economic activity’ or ‘business’ of the taxpayer. In other words, there was no link between the import VAT paid on the doors when they arrived in the UK from China and any future taxable sales.
Register for free to continue reading
It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can: