HMRC began an enquiry and rejected part of the claim on the grounds that D had provided no evidence that it had actually paid the invoices so that the effect of VATA 1994 s 26A was that the tax was not deductible.
D appealed. The Tribunal reviewed the evidence and dismissed D’s appeal.
(D had also claimed input tax on supplies from unregistered traders: an appeal against the disallowance of these claims was also dismissed.)
Why it matters: The Tribunal upheld HMRC’s view that the effect of VATA 1994 s 26A was that input tax was not deductible where the claimant had failed to provide evidence that it had paid the tax shown on the invoices which it...
