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31 January 2014
Issue: 7592 / Categories: Case law , Law digest , In Court
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Value-added tax

Fonecomp Ltd v Revenue and Customs Commissioners [2013] UKUT 0599 (TCC), [2014] All ER (D) 126 (Jan)

It was settled EU law that a taxable person who knew or should have known that, by his purchase, he had been taking part in a transaction connected with fraudulent evasion of VAT should, for the purposes of the, be regarded as a participant in that fraud, irrespective of whether or not he had profited by the resale of the goods. Where it was ascertained, having regard to objective factors, that the supply was to a taxable person who knew or should have known that, by his purchase, he had been participating in a transaction connected with fraudulent evasion of VAT, it was for the national court to refuse that person entitlement to the right to deduct. 

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