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Did the appellant have a reasonable excuse for issuing a zero-rating certificate in error?

By Andrew Needham, April 2021

Summary

This appeal was against a decision by the First-tier Tribunal (FTT) that the appellant was liable to a penalty under VATA 1994, s 62(1) and (2) in the sum of £20, 937.

The penalty arose from the decision by the appellant to issue a zero-rating certificate to Atkinson Builders Ltd on 9 March 2013 in relation to supplies to it during the course of the construction of a new pavilion. The appellant was at the time the certificate was issued a community amateur sports club, but was not a charity.

Background

The issue before the FTT was whether or not the appellant could show that it had a reasonable excuse for issuing the zero-rating certificate, it having been conceded that the appellant ought not to have issued it.
The appellant was a cricket club run by unpaid volunteers. The club raised funds to build a pavilion and sports hall adjacent to the cricket ground. Prior to any building work

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