Revenue & Customs Brief 83/09
VAT input tax deduction without a valid VAT invoice: Revised Statement
This is a re-issued version of Revenue & Customs Brief 36/07.
This Revenue & Customs Brief announces the publication of
Input tax deduction without a valid VAT invoice Statement of Practice
March 2007. It replaces Input tax deduction without a valid VAT
invoice - Statement of Practice July 2003.
It should be read by all taxpayers dealing in any of the goods subject
to widespread fraud and abuse, namely:
- (a) Computers and any other equipment, including
parts, accessories and software, made or adapted for use in connection
with computers or computer systems.
- (b) Telephones and any other equipment, including
parts and accessories, made or adapted for use in connection with
telephones or telecommunications.
- (c) Alcohol - those alcoholic liquors liable to
excise duty, which are defined by section 1 of the Alcoholic Liquor
Duties Act 1979 or in any regulations made under that Act (for example
spirits, wines and fortified wines, made-wines, beer, cider and perry).
- (d) Oils - all oils that are held out for sale as road fuel.
The revised version of the statement of practice continues to apply
in cases where an invalid invoice is held. It does not apply where HM
Revenue & Customs (HMRC) are not satisfied that a supply has taken
place or are questioning the underlying supply. It incorporates a number
of changes to reflect developments in this area and includes:
- clarification on your right to deduct input tax in circumstances
where HMRC question whether there is an underlying supply
- information about invoices reflecting amendments to Regulations
14 (Contents of VAT invoice) and 16 (Retailers’ invoices) of the Value
Added Tax Regulations 1995 brought about by SI 2003/3220
- details of the requirement to provide evidence of a supply having
being made in circumstances where no valid invoice is held; how such
a supply must be for its recipient’s business; details of checks needing
to be made to establish the bona fides of a supplier;
evidence of normal commercial arrangements, including payment arrangements
and details of how the relationship between the supplier and buyer
This Revenue & Customs Brief takes effect from the date of its
publication. HMRC guidance will be updated shortly to reflect these
Issued 12 January 2010