- MSD Wholesale Limited appealed a £470,209 VAT assessment by HMRC, relating to unpaid supplier invoices from August 2014 to November 2015.
- MSD claimed to have paid three suppliers in cash, but provided only spreadsheets and limited payment acknowledgements/receipts as evidence.
- HMRC and the Tribunal found the evidence insufficient, lacking audit trails, cashbooks, receipts, or invoice reconciliations.
- The suppliers involved were linked to VAT fraud, deregistration, or missing trader status, further undermining MSD’s claims.
- The Tribunal dismissed the appeal, ruling MSD failed to prove it paid for the supplies and was not entitled to the input tax credits.
Source: bailii.org
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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