Value Added Tax

Evidence for claiming input tax

Produced by Tolley
  • 25 Oct 2021 13:43

The following Value Added Tax guidance note Produced 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?
  • What happens if the customer receives an incomplete tax invoice?
  • 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?

Evidence for claiming input tax

The VAT regulations 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.

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:

  1. a valid tax invoice that meets the conditions laid down in SI 1995/2518, reg 14 ― see the Tax invoice requirements guidance note

  2. a self-billed invoice ― see the Self-billing guidance note

  3. a less detailed tax invoice where the tax inclusive value is £250 or less ― see the Tax invoice requirements guidance note

  4. an authenticated receipt for stage payments within the construction industry ― see the Buildings, construction and land ― tax points and invoicing guidance note

  5. 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:

  1. unique identifying number

  2. customer’s name and address

  3. tax point date (customer should use the invoice date as the tax point date)

If the invoice is not a less detailed tax invoice and is missing more than the above information, the customer should request that the supplier provides a proper tax invoice. If the supplier fails to provide a proper tax invoice, the customer can try and find alternative evidence to support any input tax claimed; however, it is important to note that failure to obtain satisfactory evidence may result in HMRC

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