VAT Consequences of Unlawful Transactions
June 30, 2026
Explore the VAT consequences of unlawful and subsequently invalidated transactions through a detailed analysis of the Ndyamara / Swifambo judgment.
This training examines the interaction between VAT liability, illegality, section 26 of the Insolvency Act, credit-note mechanisms under section 21 of the VAT Act, and key principles from MP Finance and Respublica.
Learn why a contract’s later invalidity does not necessarily erase previously triggered VAT obligations, how courts distinguish between original tax events and adjustment events, and when credit notes may provide a more effective remedy than insolvency-law recovery claims.
