Evidence for claiming input tax

By Tolley
VAT_tax_img2

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Evidence for claiming input tax
  • What documents can be used to recover VAT on received from a UK VAT registered supplier?
  • How do you account for VAT on supplies made by overseas suppliers?
  • Can photocopies be used to recover input tax?
  • Can input tax be claimed on employee purchases
  • Can input tax be claimed on low value purchases
  • Are alternative forms of evidence accepted by HMRC?

The VAT regulations and relevant EU legislation make it clear that the right to deduct input tax is normally dependent on the possession of the original invoice, or any document which the member state may deem to be an invoice. Member states also have the right to determine the criteria for considering whether a document can be treated as an invoice from a VAT perspective.

De Voil Indirect Tax Service V3.415; SI 1995/2518, reg 29(2)

An overview of the documentation required by HMRC is provided below.

What documents can be used to recover VAT on received from a UK VAT registered supplier?

If the supplier is VAT registered in the UK and charges VAT on the invoice, the business customer must hold one of the following documents before they can recover any VAT incurred:

  • a valid tax invoice that meets the conditions laid down in SI 1995/2518, reg 14 ― see the Tax invoice requirements guidance note
  • a self-billed invoice ― see the Self-billing guidance note
  • a less detailed tax invoice where the tax inclusive value is £250 or less ― see the Tax invoice requirements guidance note
  • an authenticated receipt for stage payments within the construction industry ― see the Buildings, construction and land ― tax points and invoicing guidance note
  • for goods removed from warehouse, a document authenticated or issued by the proper officer showing the claimant’s particulars and the amount of VAT charged on the goods

VIT31000

What happens if the customer receives an incomplete tax invoice?

If the customer receives an invoice which is missing the following information, it can still be used to support an input tax claim:

  • unique identifying number
  • customer’s name and

More on Claiming input tax: