United Kingdom Tax Tribunal Clarifies Input VAT Deductions, Tax Agency Discretionary Limits in Denying Claims

The United Kingdom First-Tier Tax Tribunal Oct. 17 issued a judgment in Case No. TC09666, clarifying input VAT deductions, and HM Revenue and Customs’ (Tax Agency) discretionary limits in denying claims, under Regulation 29(2) of the VAT Regulations 1995. The taxpayer, a company, sought to reclaim input VAT on fees related to a retail property purchase. The Tax Agency denied the claim, citing deficiencies in invoices and insufficient supporting evidence. On appeal, the Tax Tribunal found that: 1) the Tax Agency wasn’t entitled to deny input VAT under Regulation 29(2), where valid VAT invoices existed, because the regulation applies only ...