United Kingdom Tax Tribunal Clarifies Input VAT Recovery Requirements for Retail Exporters

The United Kingdom First-Tier Tax Tribunal Dec. 4 posted a judgment in Case No. TC09710, clarifying input VAT recovery requirements for retail exporters. The taxpayer, a retailer exporting luxury goods, claimed input tax deductions for purchases from two major suppliers. HM Revenue and Customs denied part of the claim because the taxpayer lacked valid VAT invoices as required by VAT regulations, and alternative evidence was insufficient to exercise discretion in the taxpayer’s favor. On appeal, the First-Tier Tax Tribunal found that: 1) invoices from one of the suppliers, when read with corresponding receipts, were valid and satisfied VAT requirements; 2) ...