United Kingdom Tax Tribunal Clarifies Requirements for Reclaiming Input VAT on VAT Return

The United Kingdom First-Tier Tax Tribunal Oct. 17 posted online a judgment in Case No. TC09665, clarifying the conditions under which a company may reclaim input VAT on its first VAT return. The taxpayer, a company operating as a general builder, claimed input VAT on its first VAT return after registration. HM Revenue and Customs (Tax Agency) denied the claim, contending that the taxpayer had a lack of valid VAT invoices and that most purchases occurred before the effective date of registration (EDR). On appeal, the Tax Tribunal agreed with the Tax Agency, finding that: 1) input VAT couldn’t be ...