VAT Dispute Expert Evidence

VAT disputes before the FTT frequently require expert evidence on the knowledge test in MTIC fraud cases, technical supply classification, and input tax entitlement. The tax expert witness provides independent analysis separate from forensic transaction tracing.

Under Mobilx Ltd v HMRC [2010], HMRC must prove actual or constructive knowledge before denying input tax. Expert evidence on due diligence, red flags, and the knowledge test has achieved cancellation of substantial VAT assessments.

VAT expert witnesses also address technical VAT treatment disputes including place of supply, zero-rating, and partial exemption methodology.

AspectDetail
Knowledge testAnalysis of actual and constructive knowledge of fraud connection
Due diligenceReview of commercial checks and red flag assessment
Transaction tracingChain analysis in MTIC and carousel fraud cases
VAT technicalSupply classification, place of supply, and input tax entitlement
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Frequently Asked Questions

Mobilx Ltd v HMRC [2010] established that HMRC must prove actual or constructive knowledge of a connection to MTIC fraud before denying input tax. The tax expert analyses due diligence performed and whether a reasonable business would have known of the fraud connection.

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