​ The Key to Unlocking a Recovery of Input Tax Remains a VAT Invoice.

​ The Key to Unlocking a Recovery of Input Tax Remains a VAT Invoice.


The key to unlocking a recovery of input tax remains a VAT invoice.

It has always been the case that if you wish to recover any input tax you need a VAT invoice to be able to demonstrate that your supplier has accounted for output tax on the supply.

A recent Court of Appeal case has underlined this well known fact. Zipvit Ltd (Zipvit Ltd v R & C Commrs. [2018] EWCA Civ. 1515) was a test case for many businesses who were attempting to recover some VAT incurred on Royal Mail services.

Despite the fact that Royal Mail had lost its own case and had been made to pay over some output VAT in respect of part of its services, and HMRC knew that output VAT had been accounted for, the Court rejected this appeal because Zipvit could not produce the necessary documentary evidence (VAT invoice) to demonstrate this fact.

In a complex and lengthy judgement the crux of the matter came down to the fact that a purchaser’s right to VAT recovery is NOT dependent upon whether a supplier has accounted for the tax, but whether the customer can provide evidence that the supplier had accounted for VAT in the form of a VAT invoice.

Remember: Always get a VAT invoice.

If you would like any additional information regarding VAT or would like to discuss your tax affairs in general, please don’t hesitate to get in touch.

Steve Crompton
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
email: steve.crompton@jsllp.co.uk

Chris Barrington
Tax Partner
direct dial: 01942 292505
mobile: 07730 436070
email: chris.barrington@jsllp.co.uk


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