AC-2023-LON-000068 - [2025] EWHC 2312 (Admin)

Fecha: 09-Sep-2025

Section 5

…

Where:

• an invalid VAT invoice is held; and

• the supply is of specified goods

as well as providing alternative evidence of the taxable supply taxpayers also have to show that they took reasonable commercial steps to ensure that their supply and supplier were genuine. HMRC expects taxpayers dealing in specified goods to be able to answer behavioural questions such as (although not limited to) example questions 5 and 6 in Appendix 2 of the Statement of Practice.

Note that these example questions will not necessarily be appropriate in every case. HMRC staff need to ask any and all relevant questions necessary to establish whether the taxpayer took reasonable precautions to check the integrity of its supply. Further examples include what payment arrangements had the taxpayer agreed with its suppliers (see VAT input tax deduction without a valid VAT invoice: Revised Statement of Practice (link is external)) .

Where the taxpayer was advised to carry out VAT number checks on its trading partners, HMRC staff will normally consider whether or not such checks were carried out.

Where:

• the taxpayer has provided at least some alternative evidence of the supply; but

• HMRC is not satisfied that the taxpayer took reasonable steps to ensure the integrity of their supply and supplier

then generally the taxpayer will not be authorised to deduct. Before issuing a decision HMRC staff must first seek approval from VFT. Only where an endorsement is given by VFT can such a denial of input tax proceed.

When HMRC staff must make a submission to the VAT Fraud Team”

[etc]

26.

Those parts in bold are particularly relied upon by the Claimant.

27.

By the breadth of its title therefore, this Policy statement appears to apply to any claims that are made where a compliant invoice is not held- i.e. both where the taxpayer holds a non-compliant invoice and also claims where there is no invoice held at all. The wording of the document elsewhere however directs the reader to “Invalid Invoice” procedures and documents, suggesting that it may be intended only to deal with cases where an invalid invoice itself is held.

28.

The Claimant suggests that the wording of this document comes closest to applying in the present circumstances, both in terms of the generality of the heading and the coherence of the requirements of which HMRC require proof which HB says chimes with the purpose of the invoice and the law as to the minimum requirements of such a document. HMRC say the policy document does not apply to the present circumstances.