The ECJ decision, which is covered in Section 1.41 of this issue of tax.point, was delivered on 27 September. HMRC have issued a commentary on the decision which deals with what HMRC perceive to be key points, messages and lines from the decision.

The following is taken from the HMRC commentary:

“Key messages and lines to take

• This ECJ decision confirms HMRC's view of the scope of the exemption for intra community supplies: goods must have left the UK to qualify for zero rating.
• The ECJ decision confirms that the conditions for evidencing removal as described in the VAT regulations and in Notices 703 and 725 are appropriate to prevent evasion and abuse and are consistent with the Directive.
• The judgment limits the Commissioners ability to assess for tax once they have accepted the documentary evidence that appears to support the zero rating. But this limitation will only apply where the supplier is not party to the fraud and has taken every step which he could reasonably take to satisfy himself that he is not participating in tax evasion.
• The decision supports our approach to MTIC fraud and underlines again the principle that rights conferred by law cannot be enjoyed where the taxpayer in question knew or could have known that he was participating in tax evasion.
• The Commissioners are looking closely at the decision and will publish further advice on implications of the case as soon as possible.”