The question of whether VAT retail export scheme can be used
when exporting for business purposes was considered in a tribunal
case:
G K Electrical (UK) Ltd (MAN/87/198).
The case was of particular interest from the point of view of what
the courts consider to be a
businesspurpose.
This case concerned an assessment raised against a retailer
because the retail export scheme forms held to support zero-rating
were unsatisfactory. A number of retail export scheme forms had not
been properly completed, and the quantities exported were such that
we considered many of the consignments to be by way of business.
The tribunal accepted our view and dismissed the appeal, but
it did not get into the detail of defining quantity limits for
personal exports. In reaching their conclusion the tribunal gave
the natural meaning to “business”, although expressing
reservations as to the practicality of the result. The decision
indicated that, to succeed in their appeal, the company needed to
prove that the alleged export sales had been in accordance with the
conditions specified in
Notice 704. This they had not done, the
Chairman concluding that the
burden lies on the appellant of convincing us
on a balance of probabilities that theCommissioners assessment is wrong. It has
failed.
