FTT Rules on Input VAT Recovery: Validity of Invoices and HMRC Discretion under Regulation 29(2)

• The FTT ruled on whether Eurocent (Buckingham) Ltd could recover input VAT on professional fees for purchasing retail units.
• Eurocent claimed input VAT on two invoices: one from BHNV (valid) and one from Colridge (invalid).
• The FTT held that HMRC cannot deny input tax if valid invoices exist; Regulation 29(2) only allows HMRC to accept alternative evidence if invoices are missing or defective.
• The BHNV invoice was valid and input tax was recoverable; the Colridge invoice was invalid and input tax was not recoverable.
• The case highlights the need for businesses to ensure invoices meet legal requirements to claim input tax.

Source: rpclegal.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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