Andrew Needham looks at recovering input tax and warns that a business may need more evidence than the purchase invoice.
Businesses have to overcome a number of hurdles to claim back input tax, so it is not just as simple as having a purchase invoice.
Any input tax claimed by a business must relate to a supply that has actually taken place. For example, where a payment has been made and an invoice received but the goods or services were never physically supplied, input tax should not be claimed as no supply has actually taken place.
In one First-tier Tribunal (FTT) case (David Peters Ltd v HMRC ]
