Tax Appeals Commission determination 68TACD2023 regarding VAT, 2023

Administrative Decision Number68TACD2023
Date09 March 2023
Subject MatterVAT
1. This matter comes before the Tax Appeals Commission (hereinafter “the Commission”) as
an appeal against an assessment to Value Added Taxation (“VAT”) raised by the Criminal
Assets Bureau (“the Respondent”) on 4th December 2020.
2. The assessment covers the period 1st January 2017 to 30th June 2017 and the total VAT
due on the assessment amounts to €202,913. The Appellant is appealing the assessment
in accordance with the provisions of section 119 (1) Value-Added Tax Consolidation Act
2010, as amended (“VATCA 2010”).
3. The Appellant registered for Income Tax and VAT on 1st January 2015 and declared his
business description as “car sales and recovery”. The Appellant filed VAT returns for the
periods 1st January 2015 to 30th June 2017 and for the period 1st January 2017 to 30th June
2017, the Appellant paid the sum of €2,836 in VAT. On 19th April 2017, the Appellant
voluntarily elected to de-register for VAT.
4. In 2017, the Appellant was reported through the VAT Information Exchange System
(“VIES”) to be in receipt of goods/services to the value of STG£1,411,814. “VIES” is a
system that was established by the European Union (“EU”) and it provides a mechanism
whereby checks can be made in each Member State (which the United Kingdom (“UK”)
was then a part of) on the validity of claims to zero-rating. It is designed to assist in the
detection of unreported movements of zero-rated goods between Member States.
5. This sum of STG£1,411,814 therefore represented the amount of motor vehicles that the
Appellant had been reported as importing from the UK to Ireland at the zero-rate of VAT
under his VAT registration number for the period under appeal.
6. For context, it should be noted when motor vehicles are imported into Ireland from other
EU States by motor traders in Ireland at the zero-rate of VAT, VAT should ordinarily be
charged on the full amount of the subsequent vehicle sale to the end customer. The reason
for this is that the motor trader exporting the vehicle (in this case the UK motor dealer) is
ordinarily entitled to reclaim (and have repaid) the VAT in the country of export (the UK).
It follows as the goods have been imported into Ireland at the zero-rate, if VAT was not
charged on the subsequent sale of the goods in Ireland, there would be a VAT loss to the
7. The matter initially came to the attention of the Revenue Commissioners when it compared
the Appellant’s VAT liability per the returns he had submitted to the anticipated liability per
the VIES figures and noted discrepancies therein. Subsequently as certain matters were
brought to the Revenue Commissioner’s attention during the course of an interview
conducted with the Appellant (see below at paragraph 21), the Revenue Commissioners
passed carriage of the Appellant’s tax affairs to the Respondent in accordance with the
provisions of section 5(1) (b) Criminal Assets Bureau Act 1996. The effect of this transfer
was that the Respondent became the appropriate body responsible for administering and
collecting liabilities from the Appellant and as such it engaged with the Appellant from the
date of the transfer on all aspects of his taxation affairs including the VAT investigation
forming the basis for the matter under appeal.
8. Following the conclusion of that interview, the Respondent was provided with bank
statements, other documentation and explanations by the Appellant. Using this
information, the Respondent subsequently calculated the Appellant’s liability to VAT for
the period under appeal and issued its assessment to VAT in the sum of €202,913 on 4th
December 2020.
9. On 15th December 2020, the Appellant who was not in agreement with the Notice of
Assessment lodged an appeal with the Commission. The Appeal hearing was held on 25th

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT