In 2010, a domestic VAT reverse charge was introduced for carbon emissions trading, in response to a surge in suspected fraudulent activity. In some cases, however, the damage had already been done. The fraudsters vanished, leaving a question about whether their customers should be entitled to input tax recovery. In Tower Bridge GP Ltd, the Court of Appeal has ruled that defects in some invoices (which did not show a VAT registration number because the supplier had never registered) could not be overlooked.
Source Deloitte
