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In Scanwell Logistics (UK) Limited v HMRC [2021] TC8207, the First Tier Tribunal (FTT) agreed that Onward Supply Relief was not available to a company acting as an import agent. They had not made a supply of goods.

Prior to 31 December 2020 under Onward Supply Relief (OSR), no import VAT was payable on the import of goods if:

Scanwell Logistics (UK) Limited (Scanwell) was appointed as an ‘import agent’ for the import into the UK of a number of consignments of goods from China.

The FTT dismissed the appeal. OSR was not available to Scanwell.

Part of Scanwell’s appeal concerned double taxation if OSR was not available. The FTT found that:

Since Brexit OSR only applies to goods being imported via Northern Ireland then onto the EU.

Useful guides on this topic

Agents and principals
Where someone is acting as agent for a principal, it is possible that the income received by the agent on behalf of the principal is outside the scope of VAT for the agent. What is an agent for VAT purposes? When do these rules apply?

Importing goods into GB from 1 January 2021
The post Brexit transition period ends on 31 December 2020. HMRC has issued guidance for importing goods. 

Exporting goods from GB from January 2021
The post Brexit transition period ended on 31 December 2020. What do the new rules mean? Have all of the relevant applications been made in order to continue trading smoothly?

International goods
Special VAT rules apply to goods bought from and sold to non-UK businesses.

How to appeal an HMRC decision
Disagree with an HMRC decision? How to appeal, what type of decision can you appeal and what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External link

Scanwell Logistics (UK) Limited v HMRC [2021] TC8207


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