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In Tower Bridge GP Ltd v HMRC [2021] UT30, a company did not have valid invoices to deduct input tax. There was evidence of fraud in the supply chain and HMRC declined to exercise its statutory discretion to allow alternative evidence.

The FTT upheld HMRC’s decision to deny Tower Bridge’s claim to deduct input tax on the basis that Tower Bridge did not hold valid VAT invoices for the input tax claimed in relation to those transactions and HMRC had lawfully exercised its discretion against allowing Tower Bridge to deduct the input tax.

The company appealed to the UT: contending that:

 The UT disagreed and dismissed the appeal, it found that:

Comment

In this case, one can only agree with HMRC's decision to refuse the input tax claim. This case highlights the importance of obtaining detailed invoices from suppliers in order to claim input VAT at the right time.

Useful guides on this topic

What constitutes a valid VAT invoice?
What needs to be included on a VAT invoice? Can you claim back VAT without an invoice? What evidence do you need to claim input VAT? 

How to appeal an HMRC decision?
Disagree with a HMRC decision? How to appeal, what type of decision can you appeal, what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External links

Tower Bridge GP Ltd v HMRC [2021] UT30


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