Commentary

V3.415 Tax evidenced by documents/other evidence

Part V3 Supplies, acquisitions and imports

V3.415 Tax evidenced by documents/other evidence

Input tax credit

V3.415 Tax evidenced by documents/other evidence

Regulations made under VATA 1994, s 24(6)(a) provide that a person must hold specified documents or other information at the time of claiming deduction of input tax if the claim is made in respect of1

  1.  

    (1)     a supply from another taxable person;

  2.  

    (2)     a reverse charge on services received from abroad;

  3.  

    (3)     an importation of goods from a third country;

  4.  

    (4)     an acquisition of goods from another EU member state; or

  5.  

    (5)     goods which have been removed from warehouse.

With effect from 1 April 2009, the regulations make it explicit that a person may not, save as HMRC otherwise allow or direct, make a claim for tax until he holds the required evidence2. In Senatex3, the appellant had deducted input tax in respect of commission statements issued by its commercial agents and invoices issued by an advertising designer. The German tax authorities disallowed the deductions on the ground that the statements and invoices had not constituted VAT invoices as they had not contained the supplier's VAT number. Although the documents had been corrected, the tax authorities contended that the correction of an invoice could not have retroactive effect to the date of supply of the service to which the invoice related. The Court held, however, that Directive 2006/112/EC, arts 178(a), 179 and 226(3) 'must be interpreted as precluding national legislation, such as that at issue in the main proceedings, under which the correction of an invoice in relation to a detail

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