RS Global Limited & Anor v The Commissioners for HMRC
Decision date: 12 March 2025
Neutral citation: [2025] UKFTT 332 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal arose from consolidated MTIC cases in which RS Global and a director sought to debar HMRC and obtain summary determination denying HMRC could prove fraud/connection, and also sought summary determination on whether the domestic reverse charge (s.55A VATA 1994) displaced supplier liability. The Tribunal refused to debar HMRC and denied summary judgment for the appellants on the fraud/connection issue, finding HMRC’s documentary and other evidence gave realistic prospects that fraud/connection could be proved and required fuller investigation. The Tribunal granted summary determination on the narrow legal issue of the domestic reverse charge, holding the reverse charge did not apply to these supplies and so would not displace the supplier’s liability if VAT were found due. Remaining substantive issues proceed to a full hearing.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
The binding ratio that can be identified from the notes is twofold: (1) where the taxpayer seeks summary dismissal of HMRC’s fraud/connection case, a combination of documentary SCAC and foreign-authority material together with other evidence (visits, tax‑loss letters, criminal proceedings) can give HMRC realistic prospects of proving fraud/connection such that summary dismissal is inappropriate; and (2) on construction of s.55A VATA 1994, where supplies are to be treated as zero‑rated for the purposes of that provision the domestic reverse charge does not displace the supplier’s liability, so the reverse charge did not apply in the circumstances of these cross‑border supplies.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal observed that the weight to be given to SCAC reports is a matter for the Tribunal and such reports may be accepted for factual content while discounting pure opinion; and that assertions that further evidence will be provided to meet the summary threshold require some specification of that evidence’s nature to affect the decision. These remarks were treated as guidance rather than essential to the disposal.