Harry Construction Ltd Loses Appeal: VAT Fraud Connection and Invalid Invoices Deny Input VAT Recovery

• The FTT dismissed Harry Construction Ltd’s appeal against HMRC’s refusal to recover input VAT.
• The appeal was based on the Kittel principle, where the taxpayer knew or should have known about VAT fraud.
• Invoices supporting VAT recovery were deemed invalid.
• The FTT concluded that Harry Construction Ltd was aware or should have been aware of the VAT fraud.
• The disputed invoices did not meet the necessary regulatory requirements.
• HMRC’s decision to deny input tax claims was deemed reasonable.
• Both the Kittel Appeal and the VAT Invoice Appeal were dismissed.

Source: claritaxnews.com

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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