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My client sells washing machines and became VAT registered on 1 December 2019 submitting his first VAT return to HMRC for the period to 28 February 2020. The return was the subject of a verification by HMRC.
The reviewing officer disallowed £1 300 of input tax claimed by my client on an invoice dated 5 December 2019 because the machines were sold by him on 28 November 2019 – just before the date of registration.
Is this correct? The purchase invoice still relates to a taxable supply of goods and the tax point is after the date of registration. We checked with the supplier who confirmed that his invoice is correct because it was raised within 14 days of the machines being sold to my client which was 25 November 2019.
I can understand the HMRC officer’s thinking that the key issue is...
