Past performance is no guide

Suitability of invoices to claim input tax

The taxpayer claimed input tax on invoices received from a subcontract building company (S) between June 2012 and January 2013. S deregistered from VAT on 30 September 2012 so HMRC disallowed all input tax claims after this date. The department said also the invoices did not satisfy the requirements of reg 14 of the VAT Regulations SI 1995/2518.

The taxpayer appealed on the basis that the directors had no knowledge of the deregistration. The company had paid the VAT element of all the invoices in good faith to the supplier. Further the invoices immediately before and after the date of S’s deregistration were identical in terms of the information supplied yet HMRC repaid the VAT on the former.

The First-tier Tribunal said the invoices were invalid because they did not contain the particulars required by reg 14. The description on...