A client has received a VAT visit. Everything was in order except for one matter. The VAT officer is no allowing a VAT from
one supplier of tarmac. Client does not have an account with this supplier of tarmac. They are a national company and in such cases they only issue a conveyance note, which they insist is OK as it has their address and VAT number on. However, HMRC says will not allow as not an invoice, and client's details are not on the document. Client is upset as supplier says all non-account customers receive this document, and many of his other expenses do not have his name and address on them. We have been able to provide documentary proof that all the amounts have been paid by the client.
Never had this problem before. Is HMRC being unreasonable, or this a problem something we will need to pursue with the supplier. Find it difficult to believe that such a large organisation would issue documentation which does not qualify for VAT purposes.
Any comments or advice, or links to relevant documents would be greatly appreciated.
Replies (8)
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A VAT registered customer must supply a valid vat invoice when asked.
Has your client asked them specifically for a VAT invoice relating to the purchase?
invoice?
HMRC have discretion to accept alternative evidence for input tax. See online guidance, VIT31200.
Big vs small
This does seem to happen a bit when large wholesalers deal with non-account customers, who may presumably be private taxpayers doing their drive up. Often it's easier to issue a uniform document and let head office sort out any problems. I have usually found that, when you talk to someone in the organisation who is in the know, they can easily produce a VAT invoice. Finding such a person is the issue!
The alternative evidence discretion is just that - "save as the commissioners otherwise allow" is the phrase I think, so, if they are not happy, tough.
I agree, ask politely for a VAT invoice pointing out you are a business (maybe provide the VAT number as proof). But I would skip the branch people and go to head office quoting the order number.
Input VAT claim
Another requirement for claiming input VAT: Is there physical evidence that the goods in question were supplied by tarmac to the client for the purposes of his trade?