TC09666 - [2025] UKFTT 01253 (TC)

Fecha: 09-Sep-2025

Validity of invoices and HMRC’s discretion

Validity of invoices and HMRC’s discretion

28.

Even if all other conditions for the recovery of input tax are satisfied, it is a pre-condition for recovery that a trader has a VAT invoice (Regulation 29(1) and (2)):

Claims for input tax

(1)

Subject to paragraph (1A) below, and save as the Commissioners may otherwise allow or direct either generally or specially, a person claiming deduction of input tax under section 25(2) of the Act shall do so on a return made by him for the prescribed accounting period in which the VAT became chargeable save that, where he does not at that time hold the document or invoice required by paragraph (2) below, he shall make his claim on the return for the first prescribed accounting period in which he holds that document or invoice

…

(2)

At the time of claiming deduction of input tax in accordance with paragraph (1) above, a person shall, if the claim is in respect of—

(a)

a supply from another taxable person, hold the document which is required to be provided under regulation 13…

provided that where the Commissioners so direct, either generally or in relation to particular cases or classes of cases, a claimant shall hold or provide such other … evidence of the charge to VAT as the Commissioners may direct.

…”

29.

The VAT invoice is the document required to be issued by the supplier in accordance with Regulation 13. That document must contain the information and otherwise comply with the conditions set out in Regulation 14.

30.

Where the trader does not hold a Regulation 14 compliant invoice then, under Regulation 29(2), HMRC may direct that a taxpayer should hold evidence other than a VAT invoice. If HMRC decline to exercise their discretion then the trader’s input tax claim fails because it has not satisfied the evidential requirements in Regulation 29.