TC09676 - [2025] UKFTT 01278 (TC)

Having reached conclusions on the principles to be applied, the application to the facts of this case is straightforward. As far as EU law is concerned, TSI is not entitled to an input tax credit for the import VAT it has suffered as it is not the owner of the goods and the value of the goods on which the import VAT is charged is not reflected in the price of the repairs carried out by TSI.

I appreciate that, in the circumstances, this makes it impossible for TSI to obtain credit for the import VAT but, as HMRC point out, they do have the option either of arranging for the owner of the goods to be the importer of the goods (so that the owner can then claim an input tax credit) or (which TSI has now done) to register for inward processing relief.