TC09666 - [2025] UKFTT 01253 (TC)

Following the outcome of the internal review on 30 August 2023, HMRC accepted that the BHNV Invoice complies with Regulation 14(1) save in two respects:

The Appellant argued that it was unnecessary to show separately the time of supply and the date of the invoice where this was the same date. HMRC’s internal guidance at VATREC5040 provides;

“The date of issue must always be shown on a VAT invoice. If this is also the time of supply (tax point), then the time of supply need not be shown separately.”

The Appellant argued that the supply was part of a single supply of services which ended on completion of the purchase of the Property and so that was the time of supply and the date of the invoice.

As to the description of the services, the Appellant argued that the description was very detailed. It is only necessary for the description to provide HMRC with a means of understanding the essential nature of the supply and a means of identifying it in correspondence with the taxpayer. It was not necessary for the invoice to contain sufficient information to enable HMRC to draw definitive views as to the VAT treatment of the supply (Fount Construction TC/2022/11373 at [13] - [14]).

Ms Donovan argued that the conditions in Regulation 14(1) were not met and that the invoices lacked sufficient detail regarding the individual services provided. This deficiency prevented HMRC from verifying whether the supplies were made for VAT purposes and whether the VAT was accurately charged. In the hearing when pressed Ms Donovan suggested the invoices should have referenced the underlying contracts or perhaps exchange of e mails from which the supply derived. It might also have described the period over which the services were provided. Ms Donovan accepted there was no specific requirement to do so, each invoice needed to be seen in context and the extent of the requirement to provide a description of the services supplied varied accordingly.

There may have been questions as to nature of the services apparently supplied but the issue in this appeal is whether the requirements of Regulation 14 have been satisfied, a much more limited exercise. In our view the BHNV invoice does so. We do not think it necessary to show separately the time of supply and the date of the invoice when they are the same date. Further, we find the description of the services is detailed and sufficient to identify the services being supplied as required by Regulation 14(1). HMRC may need further information to satisfy themselves that a supply has taken place but that is not the test.