Summary
- This EY item reflects the strict evidential discipline of UK VAT: the right to deduct input tax depends on holding a valid VAT invoice (or robust alternative evidence accepted at HMRC’s discretion) at the time the claim is made, not retrospectively. [dlapiper.com], [simmons-simmons.com]
- Recent case law (e.g. Hotelbeds, Plat UK) confirms courts scrutinise both the validity of invoices and the reasonableness of HMRC’s refusal to accept alternative evidence, emphasising VAT neutrality yet insisting the invoice remains “a pivotal part of the VAT system.” [simmons-simmons.com], [oliverelliot.co.uk]
- Practical takeaway for businesses: always obtain compliant VAT invoices, retain contracts, booking and payment records as fallback evidence, and document all efforts to secure invoices — especially in complex, cross-border or non-standard procurement supply chains. [dlapiper.com]
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