HMRC denied VAT input tax on the basis that taxable supplies were not made to the taxpayer claiming it

Source Baillii.org

Extract: The way in which an entity is treated for one tax purpose (as a CIS contractor) does not necessarily determine how that entity’s activities may be treated for another tax purpose (VAT in this case). The fact that the Intermediate Companies may have not been in compliance with the CIS rules does not mean that they could not have made the supplies which Smart Organiser say they made. However, I have taken it as relevant to the overall context in which these supplies were made that the CIS status of the Intermediate Companies does not match the nature of the supplies which are alleged to have been made at the relevant time.

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