Heartlands House Limited Successfully Appeals HMRC’s Decision on VAT Repayment Claims

• The First-tier Tribunal (FTT) has released its decision in a case concerning VAT repayment claims by Heartlands House Limited (HHL).
• HHL provides services in the construction sector and registered for VAT in October 2018.
• HMRC disallowed the VAT claims, stating that HHL had not provided sufficient evidence of taxable supplies.
• HMRC argued that pro forma invoices did not reflect the work done, there was no planning permission naming HHL for some projects, and there was a lack of information about subcontractors.
• HHL argued that it had provided clear evidence of taxable supplies, including signed contracts and invoices.
• The FTT noted that HHL had provided evidence of payments to suppliers and contracts for construction projects.
• The FTT also noted that late and reduced payments from clients indicated that supplies had been made by HHL.
• The FTT concluded that HHL had provided sufficient evidence of an intention to make taxable supplies and allowed the appeal.
• Businesses challenged on their intention to make taxable supplies should carefully consider the evidence presented by HMRC.

Source: financeandtax.decisions.tribunals.gov.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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