Teleos plc and others v Commissioners of Customs & Excise (Case C-409/04) – Advocate General’s Opinion released on 11 January 2007

19 Mar 2007 | by Alan Bates

First published by De Voil Indirect Tax Intelligence, Issue 129, February 2007

In 2002 Teleos and other UK-based traders (together, ‘Teleos’) sold mobile phones ‘ex works’ to a Spanish company, ‘TT’.  Under the relevant supply contracts, Teleos were required to deliver the goods to the warehouse of TT’s forwarding agent in the UK. Thereafter, TT was responsible for the removal of the goods to Spain.  That removal was to have been physically effected by a carrier to whom the goods were to have been passed by the forwarding agent. Subsequent to each transaction, TT provided Teleos with a stamped and signed original CMR Note purporting to prove that the goods had reached their destination. On the application of Teleos, the supplies were zero rated by HMCE (as they then were) and input tax repayments authorised.