- High Court ruled in Hotelbeds v HMRC that businesses can recover VAT without valid invoices if alternative evidence is robust enough
- Hotelbeds faced VAT challenges when paying hotels via virtual credit cards resulted in missing invoices, with HMRC accepting some claims but refusing others inconsistently
- Court found HMRC misapplied guidance and acted irrationally by treating missing invoices as automatic grounds for refusal rather than evaluating alternative evidence case by case
- Ruling establishes that strong alternative evidence like contracts, bank statements, and supplier communications must be considered for VAT recovery claims
- Decision provides new opportunities for businesses in travel, hospitality, and digital sectors to challenge HMRC refusals and emphasizes importance of maintaining robust documentation
Source: vatit.com
Click on the logo to visit the website
Latest Posts in "United Kingdom"
- VAT Report – What Is a VAT Report?
- Post-Brexit VAT Divergence and why the EU Forgives and the UK Doesn’t?
- Fiscal Solutions – Great News – The United Kingdom is now part of our Fiscal Portal!
- Post-Brexit VAT: Why the EU Accepts Imperfect Export Proof but the UK Demands Perfection
- VAT Input Tax Denial Under Kittel Principle – Appeals Allowed Against HMRC
