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No agreement for supply

In Oliver¹, it was held that a supply of goods means:

'the passing of possession of goods pursuant to an agreement whereunder the supplier agrees to part and the recipient agrees to take possession'.

Where goods are lost or destroyed before supply, it is apparent that no taxable supply can take place. However, HMRC may require persons to account for goods acquired in the course or furtherance of their business and may assess them if they fail to prove that the goods have been or are available to be supplied, exported or otherwise removed from the UK, or lost or destroyed².

In British American Tobacco International Ltd v Belgian State; Newman Shipping & Agency Co NV v Belgian State³, a quantity of cigarettes was stolen from a warehouse. The Belgian tax authorities demanded payment of the VAT (and excise duty) from the company owning