Do You Have The Correct Documentation In Order To Claim Back Input VAT?

Recently there have been two judgements both of which denied the right to claim VAT without a valid VAT invoice. So what exactly must an invoice show in order to be a valid VAT invoice? Sometimes it is a good idea to refresh ourselves with the basics so below is a quick recap of the rules... 

Invoices in excess of £250 or to an EC country

• Invoice number
• Supplier’s name, address and VAT registration number
• Time of supply (tax point)
• Date of issue (if different to time of supply)
• Customer’s name and address
• Type of supply
• Description that identifies the goods or services supplied and for each description you must show:

1. The quantity of goods or extent of services
2. The charge made excluding VAT
3. The rate of VAT
4. The total charge made excluding VAT
5. The rate of any cash discount offered
6. Each rate of VAT charged and the amount of VAT charged at each rate in sterling

• The total amount of VAT charged in sterling

Invoices with a value below £250 and where supply is not to an EC country

• Supplier’s name address and VAT registration number
• Time of supply (tax point)
• Description of the goods or services supplied
• Gross amount payable
• For each rate of VAT chargeable, the gross amount payable including VAT and the VAT rate applicable.

No VAT invoice is required where total expenditure for each supply is £25 or less (including VAT) and relates to: -

• Telephone calls from public or private telephones.
• Purchases through coin operated machines.
• Car park charges (on-street parking meters are not subject to VAT).
• A single or return standard rated toll charge paid at the toll booth. (But a VAT invoice is required if a book of toll tickets is purchased or where the toll charges are paid under an arrangement where payments are made either in advance or arrears.)

Where a valid VAT invoice cannot be obtained, HMRC may use their discretion and still allow recovery if you can answer some or all of the following questions: -

1. Do you have alternative documentary evidence other than an invoice (e.g. supplier statement)?
2. Do you have evidence of receipt of a taxable supply on which VAT has been charged?
3. Do you have evidence of payment?
4. Do you have evidence of how the goods/services have been consumed within the business or their onward supply?
5. How was your relationship with the supplier established? For example:

• How was contact made?
• Do you know where supplier operates from?
• How do you contact the supplier?
• How do you know the supplier can supply the goods or services?
• How do you know the goods are not stolen?
• How can faulty supplies be returned?

It seems that the point HMRC are trying to make is if a business loses a VAT invoice for a particular supply provided you have some form of proof of supply and payment that they will allow the claim for input VAT. However they will not allow endless undocumented claims for input VAT without supporting invoices.


For more information on any of our points, or to find out more about anything else, please contact the either Rachael or Anthony via any of our social media or by calling the office on 01234 301000.