TC09659 - [2025] UKFTT 01211 (TC)

Fecha: 18-Sep-2025

Right to credit for input tax

Right to credit for input tax

105.

The right of a taxable person to deduct input tax is contained within s24-29 VATA. In particular:

(1)

s25 VATA requires a taxable person to account for and pay any VAT on the supplies of goods and services which they make and entitles them to a credit of so much of their input tax as is allowable under section 26 (see s25(2)); and

(2)

under s26(2) VATA a taxable person is given credit in each accounting period for so much of the input tax for that period as is attributable to supplies made by them in the course or furtherance of their business.

106.

The evidential requirements to be satisfied by a trader wishing to exercise its right to deduct input tax are set out within the Value Added Tax Regulations 1995 (SI 1995/2518) (the “VAT Regulations”). In particular:

(1)

the obligation of a registered person to provide a VAT invoice is defined in Regulation 13;

(2)

the requirements for the contents of a VAT invoice are defined in Regulation 14; and

(3)

a trader is required to, inter alia, hold or provide the document required in Regulation 13 or such other evidence to support their claim as HMRC may direct, by Regulation 29(2).