Maine Distribution Ltd v HMRC [VAT Decision 20284]

30 Oct 2007 | by Monckton Chambers

First published by De Voil Indirect Tax Intelligence, Issue 137, October 2007

The Appellant (“Maine”) first registered for VAT as a furniture distributor though, in October 2005, it informed the Commissioners that it would commence wholesale trading in Computer Chip Units (“CPUs”).  The Commissioners repeatedly informed the Appellant of the risks inherent in such wholesale trade, particularly be referenced to MTIC fraud, and pointed out the needs to carry out due diligence checks on all trading partners.