How to Make Sure You Get the VAT Refund You Are Entitled To
VAT-registered businesses can claim Input tax against the goods and services they buy/use, and this Input tax could adjust to output tax, reducing the amount of VAT to pay to HMRC. But the business should get help from a VAT adviser to ensure they get all the VAT refunds they entitle to.
What is input tax?
Input tax is the VAT incurred by a VAT-registered company on its business expenses. Typically, it can be offset against the output tax that the business charges on its sales, with the net amount owed to HMRC.
- the amount claimed must be VAT properly charged by another taxable person or relate to a taxable importation or acquisition;
- the supplies on which the VAT was charged must be made to the person who is claiming the input tax;
- the supplies must have been received for the purpose of the business;
- the supplies must normally be received in the accounting period in which the claim is to be made; see VIT30500
- the person claiming input tax must hold good documentary evidence of the supplies in support of the claim; see VIT31000 and
- the supplies received must not be subject to input tax restriction in a Treasury blocking order.
- the purpose of the business requirement is not obviously met or
- the supplies are not solely used for a business purpose
An item relating to an input tax cannot be validated in the absence of a Valid invoice
No VAT Refunds Will Be Issued Without a Proper Invoice:
Moreover, This was a decision of First Tier Tribunal in a recent case a bed and breakfast business accounted for and claimed input VAT on the rent where they entitle to claim the same in the absence of a valid invoice.