Summary 

The appellant was appointed to act as “import agent” in relation to the import into the UK of a number of consignments of goods from China between 2014 and 2017. When the goods were released to it, it arranged their onward transport to other countries in the EU. The appellant made import declarations in which it claimed exemption from import VAT under Onward Supply Relief (“OSR”). HMRC decided that OSR was not available on these imports and made a VAT assessment on appellant for £5.7m.The appellant appealed against this assessment. 

Background 

The effect of the OSR provision was that no import VAT was payable by the appellant if: (i) it used the goods in making a supply of goods, (ii) the supply was to a taxable person in the EU and (iii) it complied with the reporting and administrative conditions imposed by