When Invoices Are Missing – HMRC may accept alternative evidence if there is no VAT invoice

A business needs a valid tax invoice to claim input tax on expenditure.
HMRC may accept alternative evidence if there is no VAT invoice.
HMRC staff must consider whether there is satisfactory alternative evidence of the taxable supply.
HMRC staff should work through a checklist to determine if alternative evidence is credible.
The checklist includes questions about the business’s evidence of receipt of a taxable supply, payment, consumption or onward supply of goods/services, knowledge of the supplier, and relationship with the supplier.
If the responses to the checklist are credible, HMRC staff should allow the taxpayer to deduct the input tax.
A business can challenge HMRC’s decision not to allow a claim if HMRC acted unfairly or unreasonably.
The taxpayer must demonstrate that HMRC was unreasonable in not using its discretion.
There is significant case law on this subject, including the Upper Tribunal (UT) cases of James Boyce Scandico Ltdv and Wasteaway Shropshire Limited.
It is best to always obtain a proper tax invoice from a supplier.
The level of evidence required when no invoice is held usually depends on the value of the claim.

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.