VATF43236 - Basic interventions: output tax interventions: refusing zero rating of dispatches and exports where there is connection with fraud: the Mecsek principle: does the Mecsek principle also apply to exports?
»Ê¹ÚÌåÓýapp judgment in Mecsek only covers the denial of zero rating on an 'intra-Community supply', reflecting the facts of the case and the question put to the ECJ by the Hungarian court. »Ê¹ÚÌåÓýapp Mecsek principle cannot, therefore, be directly relied upon to deny zero rating on non intra-Community supplies (exports).
»Ê¹ÚÌåÓýappre are, however, other interventions that can be used in relation to exports, depending on the risk. »Ê¹ÚÌåÓýappse can be found in the Export Procedures guidance manual.
If you come across a case involving an export to a third country in which there is evidence that the exporter knew or should have known that its transaction was connected with a VAT fraud, you should contact the VAT Fraud Team to discuss what action may be appropriate.