An unusual tax tribunal raises questions about online businesses paying VAT, particularly in cases involving multiple parties.
The case background:
The recent tribunal case concerned the jewellery business, Avalaya.com Partnership, which had a very close working relationship with a sole trader – Alla Kisil T/A Jewellery 4 All.
In 2009, the two members of the Avalaya partnership lent US$60,000 to the sole trader, who was a personal friend of the partners. The loan was to be repaid in pounds sterling.