We are experienced in conducting cases where HMRC has issued a VAT Notice of Assessment to an individual or company under the Kittel Principle.
If you have received a VAT Notice of Assessment, HMRC will usually confirm in correspondence to you if the decision has been based on the Kittel Principle.
The Kittel Principle derives from a European Court of Justice (‘ECJ’) judgement in the case of Axel Kittel & Recolta Recycling SPRL in 2006.
The case sets out the Kittel Principle that a taxpayer who claims input tax on transactions which:
he knew or
should have known,
were connected with fraudulent evasion of VAT,
is to be denied his entitlement to the right to claim that input tax.