Summary
The appellant appealed to the First-Tier Tribunal (FTT) against a demand made by HMRC for import VAT of £121,321.93. The appellant's principal ground of appeal was that although it made payments to its supplier in excess of the declared import value of the goods, these were advance payments made to secure a better price and were not for imports of specific goods. As such, according to the appellant, the additional import VAT sought by HMRC was not due.
Background
The Turkish factory supplying bottled water to the appellant started to request payment in advance, and the prices increased significantly. The appellant was also concerned about inflation in Turkey. The appellant therefore discussed with its supplier whether they could stop the price increases by making payments in advance. At the same time, the appellant wanted to increase its presence in the market and have a guaranteed