Hotelbeds v HMRC: Businesses Can Reclaim VAT Without Invoices, Court Rules

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

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