This case highlighted the importance of adequate record keeping and the maintenance of a clear audit trail to evidence all transactions, supplies and purchases. The appellant was refused a substantial VAT repayment because there was not sufficient evidence to support the VAT liability of the supplies concerned. It is important that all taxpayers maintain all records legally required for a minimum of 6 years to avoid any VAT assessments and penalties based on insufficient records. Similarly, if a taxpayer has declared VAT at an incorrect (higher) rate than is legally correct, it will be necessary to ensure that the reason for any VAT accounting error can be explained and demonstrated to HMRC’s satisfaction before any VAT refund claim is authorised.
Source Constable
Latest Posts in "United Kingdom"
- Guernsey Seeks Companies to Support New GST Administration, Tender Deadline Approaches
- Navigating UK VAT: Key Considerations and Pitfalls in Exporting Goods
- HMRC’s New VAT Error Correction Rules: Stricter Penalties and Reporting Changes Explained
- Supreme Court Clarifies VAT Grouping and Time of Supply Rules in Prudential Assurance Case
- UK Supreme Court Confirms VAT on Intragroup Fees for Former VAT Group Members
